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Destini Alford
on Nov 05, 2024

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A ________ industry has a relatively small number of firms that dominate a market.

A) Cournot
B) contestable
C) concentrated
D) monopolistically competitive

Concentrated Industry

characterizes a market structure where a few firms dominate the industry, often leading to reduced competition.

Cournot

A model of duopoly in which two firms assume the output of the other, deciding their own levels of production to maximize profit, leading to a strategic equilibrium.

Contestable

Pertaining to a market condition where the entry and exit of firms are costless or have low barriers, enabling potential competition to limit the market power of existing firms.

  • Acknowledge the value of concentration ratios in ascertaining the organization of a market.
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RK
Rayan KidiaNov 06, 2024
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