Which of the Following Statements About the Competitive Environment Is

question 52

Multiple Choice

Which of the following statements about the competitive environment is TRUE?

• A) In monopolistic competition a seller has a down-sloping demand curve due to the lack of any substitute products.
• B) In pure competition, an individual firm is usually faced with a very inelastic demand curve.
• C) Firms in oligopoly should avoid price cutting.
• D) The industry demand curve in oligopoly is usually horizontal.
• E) All of the above.

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Definitions:

Unreasonably Dangerous

Describes a product or action that poses a risk of harm to people or property that exceeds what would be anticipated by the ordinary consumer.

Warranty Disclaimers

Legal statements that negate or limit the seller's liability for certain defects or failures in the goods or services provided.

Written

Expressed or conveyed by means of letters or symbols on a surface, typically intended to ensure permanence and clarity of the communication.

Liability

A legal obligation or responsibility that may arise from contracts, torts, or statutes requiring one party to compensate another.