In an Industry with a Large Number of Firms

question 164

Multiple Choice

In an industry with a large number of firms,

• A) each firm will produce a large quantity, relative to market demand.
• B) one firm will dominate the market.
• C) collusion is impossible.
• D) competition is eliminated.
• E) barriers to exit must exist.

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Definitions:

Concrete Operations

A stage in Piaget's theory of cognitive development, typically occurring between 7 and 11 years of age, during which children gain a better understanding of mental operations and can think logically about concrete events.

Tangible Objects

Physical items that can be seen, touched, and occupied in space, as opposed to abstract concepts or digital items.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.

Understanding Conservation

The cognitive ability to recognize that quantity or amount does not change when its form or appearance is altered.