Which of the Following, If True, Would Be an Example

question 48

Multiple Choice

Which of the following, if true, would be an example of a monopolistically competitive industry?

• A) In the utilities industry, average cost declines over all levels of output.
• B) In the automobile industry, fixed costs as well as variable costs are high.
• C) In the retail trade industry, a large number of firms provide similar products.
• D) The market for basic office supplies (pencils, paper, and clips) is served by scores of online suppliers.
• E) In the pharmaceuticals industry, the entire market is served by a small number of large firms.

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Definitions:

Negative Consequence

An unpleasant outcome resulting from an action, which is often used as a form of punishment or deterrent.

College Students

Individuals enrolled in higher education institutions, often pursuing degrees or certificates.

Caffeine

A stimulant drug found in coffee, tea, cola, and chocolate that affects the central nervous system.

Depressant Drug

A substance that reduces the functioning of the nervous system, often used to induce calming or sleep-inducing effects.