Which of the Following Statements About the Competitive Environment Is

question 47

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 these statements about the competitive environment are TRUE.

---

Definitions:

Nonconformists

Individuals who reject or do not follow prevailing social norms or practices.

Amygdala

A part of the brain involved in experiencing emotions, especially fear and pleasure.

Spatial Orientation

A cognitive understanding and perception of the environmental features around oneself and their relative position.

Rostral Cingulate Cortex

A region in the brain associated with emotional regulation, decision-making, empathy, and anticipation of reward, playing a significant role in social and cognitive processes.