Competition Is More Likely to Exist When

question 119

Multiple Choice

Competition is more likely to exist when:

• A) There is easy entry into and exit out of industries
• B) A government-issued license is required to set up a firm in an industry
• C) The government purchases most goods and services
• D) Economic power is concentrated among a few large firms

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Definitions:

Weak Axiom

A less stringent version of a mathematical axiom used in economics and decision theory that deals with the consistency of consumer choices under varying circumstances.

Revealed Preference

A concept in consumer theory stating that the preferences of consumers can be revealed by their purchasing habits.

Prices

The price in money anticipated, needed, or given in exchange for a commodity.

Strong Axiom

An advanced principle or rule, often within a specific field of study, that has widespread acceptance and provides a solid foundation for further developments.