In contemporary market systems competition____________________?
Correct answer: B. is diluted by private and state monopolies
- A. is quite strong
- B. is diluted by private and state monopolies
- C. does not exist
- D. has been replaced by planning
Explanation
Modern market economies contain competition, but it is often weakened by private monopolies, oligopolies and state-owned monopolies. Therefore, competition is better described as diluted rather than absent or uniformly strong.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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