A Monopolistically Competitive Market

question 332

Multiple Choice

A monopolistically competitive market

• A)usually has too many firms, reducing the economic profit of each firm to zero.
• B)usually has too few firms, reducing the product variety for consumers.
• C)may have too many or too few firms, and the government can intervene to achieve the optimal number of firms.
• D)may have too many or too few firms, but the government can do little to rectify the situation.

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Definitions:

Shaft Key

A mechanical component used to secure a rotating machine element, like a gear or pulley, to a shaft, preventing relative motion between them.

Motor

An electromechanical device that converts electrical energy into mechanical energy, commonly used to power machines.

Rotates

The action of an object turning around an axis, commonly referring to parts within machinery or motors.

Motor Housing

The protective casing around a motor that houses its components and protects them from external damages.