Economics 0455 · IGCSE · Market structure

Market structure — practice question

A large privately owned firm is the only provider of electricity in a city. Which pair of characteristics is likely to apply to this firm?

  • Abarriers to entry: high, long-run profit: high, pricing decision: price maker
  • Bbarriers to entry: high, long-run profit: low, pricing decision: price taker
  • Cbarriers to entry: low, long-run profit: high, pricing decision: price maker
  • Dbarriers to entry: low, long-run profit: low, pricing decision: price taker

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