An Industry with a Large Number of Relatively Small Firms

question 205

Multiple Choice

An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit of firms is:

• A)a monopoly.
• B)a duopoly.
• C)an oligopoly.
• D)monopolistically competitive.

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Definitions:

Transformation

The process of converting inputs into outputs, often relating to the change of raw materials into finished products in the context of production.

Opportunity Cost

The rejection of potential benefits from alternative propositions when favoring one.

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other individuals or entities.

Economic Investment

The expenditure on capital goods used to produce other goods or services in the future, contributing to a country's productive capacity.