An Industry's Market Structure Refers to

question 125

Multiple Choice

An industry's market structure refers to

• A)The number and size of the firms in the industry.
• B)How much firms spend on advertising.
• C)What types of products are produced in that industry.
• D)Whether the market is a product market or a resource market.

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Definitions:

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of cyclic unemployment.

Production Efficiency

A level of production in which the economy can no longer produce additional amounts of a good without lowering the production level of another product.

Production Inefficiency

A situation where a firm or economy is not producing at the lowest possible cost or maximally utilizing its resources, leading to waste or lost potential output.

Opportunity Cost

Sacrificing potential opportunities from a range of alternatives by settling on one.