II. DIRECTIONS: Choose A If The Statement Is TRUE And B If The Statemen…

II. DIRECTIONS: Choose A if the statement is TRUE and B if the statement is
FALSE

6. A public market is an example of monopolistic competition
7. The market structure that involves the most competition is a perfect competition
8. Oligopoly is a market structure that has the largest number of firms trying to sell
their products
9. The barriers to entry is a condition necessary for the existence of perfect
competition
10. Firms utilize no price competition and product differentiation in the market
structure of a monopolistic competition.
11. In a monopolistic competition market, firms usually sell products that are close
substitutes.
12. Monopoly is a market that has many sellers.
13. One feature of an oligopoly is that there are few buyers.
14. When the largest 3 or 4 firms in an industry produce 70% or more of the industry’s
total output, the industry is classified as an oligopoly.
15. Electricity is an industry that is often a natural monopoly.​

Answer:

6.a

7.a

8.a

9.b

10.a

11.b

12.b

13.b

14.a

15.a

II. DIRECTIONS: Choose A If The Statement Is TRUE And B If The Statemen…

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