Consumers Can Choose from Hundreds of Different Kinds and Producers

question 88

Multiple Choice

Consumers can choose from hundreds of different kinds and producers of cheese,each with a slightly different flavor and texture.This type of market structure is known as _____.

• A)pure competition
• B)monopolistic competition
• C)a monopoly
• D)an oligopoly

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Definitions:

Bank Guarantee

A financial instrument provided by a bank on behalf of a client, ensuring payment to a beneficiary if the client fails to fulfill contractual obligations.

Contingent Liability

A potential financial obligation that may arise in the future, dependent on the occurrence of certain events.

Liability

An obligation arising from past transactions or events, which may result in an outflow of resources embodying economic benefits.

Provision

An amount set aside in the accounts to cover a probable future expense or liability, recognized for known obligations of uncertain timing or amount.