Which of the Following Statements Is Correct

question 293

Multiple Choice

Which of the following statements is correct?

• A)Firms with some degree of monopoly power are common, but firms with substantial monopoly power are rare.
• B)Firms with some degree of monopoly power are rare, as are firms with substantial monopoly power.
• C)Firms with some degree of monopoly power are common, as are firms with substantial monopoly power.
• D)Firms with some degree of monopoly power are rare, but firms with substantial monopoly power are common.

---

Definitions:

Budget Constraint

The limitations on the purchasing power of a consumer, stemming from their income and the prices of goods and services.

Clothing

Clothing and items donned on the body, usually crafted from textiles or cloths.

Food

Consumable items produced through agriculture, farming, hunting, fishing, or food processing that individuals eat for nutrition and pleasure.

Perfectly Competitive Market

A theoretical market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, where all entities are price takers.