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AP® Microeconomics

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Competition Among Many Competitors

APMICR-BCL1PD

All of the following are consequences of a large number of firms competing within the same market such as under perfect competition and monopolistic competition EXCEPT that

A

each firm has little power to affect the market price.

B

each firm may ignore any one particular competitor.

C

each firm has an incentive to cooperate with other firms.

D

each firm must respond to the market price.

E

each firm holds a small share of the market.