For Which Market Structure Do Economists Have the Least Precise

question 151

Multiple Choice

For which market structure do economists have the least precise model of price determination?

• A) Perfect competition in the short run
• B) Perfect competition in the long run
• C) Oligopoly
• D) Monopoly

---

Definitions:

Bonds

Fixed income securities that represent a loan from an investor to a borrower, typically corporate or governmental, with terms including the interest rate and repayment date.

Privately Placed Bonds

Bonds that are sold directly to a small group of investors instead of being offered to the general public, often to avoid the costs and regulations of a public offering.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a specified price before a certain date.