Which of the Following Is a Market Structure in Which

question 109

Multiple Choice

Which of the following is a market structure in which only one seller of a product exists and for which there are no close substitutes?

• A)Pure competition
• B)Monopolistic competition
• C)Oligopoly
• D)Monopoly

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Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent or salaries.

Short Run

A period in which at least one of a firm's inputs is fixed and cannot be changed, limiting the firm's capacity to adjust production levels.

Monopolistically Competitive

An economic model where numerous companies offer products that are alike but not exactly the same, granting them a certain level of influence over the market.