question 1

Which of the scenarios below is an example of a monopoly? A company engages in predatory price cutting in order to discourage any competition. 0 In this industry, it is easy to enter and exit the market. A company produces a lemon-lime soda that is identical to 0 others on the market in terms of taste but has a recognizable brand because of advertising. This industry has stable pricing due to the tendency of groups of firms to work together to set prices. Which of the following is a characteristic of monopolistic competition? Firms sell homogenous products. 0 Predatory price cutting occurs. Cooperation between firms is sometimes used to maintain prices. 0 Advertising increases the cost of production. Select the definition that represents an oligopoly. O A market structure that consists of a few firms that all sell similar products O A model that explains why price fixing tends to break down O When firms work together to determine the price and number of products O A group of firms engaged in price fixing