2016年美国CPA模拟试题：Business（三）

A market with many independent firms, low barriers to entry, and product differentiation is best classified as:

a.An oligopoly

b.Monopolistic competition

c.Pure competition

d.A natural monopoly

答案：B

Explanation

Choice "b" is correct. A market with many independent firms, low barriers to entry, and product differentiation is best classified as monopolistic competition. There are few barriers to entry and firms exert some influence over price in such a market. Best examples are brand name consumer products.

Choice "d" is incorrect. A natural monopoly exists when economic and technical conditions permit only one efficient supplier.

Choice "a" is incorrect. The presence of only one company indicates a monopoly; the presence of a few companies would indicate an oligopoly.

Choice "c" is incorrect. Market conditions characterizing pure competition include homogeneous, not differentiated, products.