AP® Microeconomics

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Extremes of Competition

APMICR-KLOVVS

Which of the following statements correctly identify why most product markets in the real world lie between the extremes of perfect competition and monopoly?

I. Most firms face competition from other firms which enter their market.
II. Most firms are unable to dominate their market.
III. Most firms have some price-making power.

A

I and II only

B

I and III

C

I only

D

I, II and III only

E

II and III only