The following table shows the units of the output sold at different price levels by Gizmo's Inc. Table 10.1

- According to Table 10.1,Gizmo's cannot be:
A)a monopsonist.
B)a monopoly.
C)an oligopolistic firm.
D)a perfectly competitive firm.
E)a monopolistically competitive firm.

Question

The following table shows the units of the output sold at different price levels by Gizmo's Inc. Table 10.1

- According to Table 10.1,Gizmo's cannot be:
A)a monopsonist. 
B)a monopoly. 
C)an oligopolistic firm. 
D)a perfectly competitive firm. 
E)a monopolistically competitive firm.

Quizplus · Accepted Answer

Gizmo's Inc. cannot be a monopoly, as there are other firms producing the same output. It also cannot be an oligopolistic firm, as there is no information given about the number of firms in the market. Similarly, it cannot be a monopsonist as there is no information given about the number of buyers in the market. The output sold by Gizmo's Inc. varies based on the price levels, indicating that the firm faces competition, and thus, cannot be a monopolistically competitive firm. Therefore, the best choice is D, a perfectly competitive firm.

The Following Table Shows the Units of the Output Sold