The following table shows the units of output sold at different price levels by Gizmo's Inc.Table 11.1

-According to Table 11.1, 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 output sold at different price levels by Gizmo's Inc.Table 11.1
 
-According to Table 11.1, 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

The table shows a perfectly elastic demand curve, where price remains constant regardless of the level of output sold. This is characteristic of a perfectly competitive market structure. Gizmo's Inc. cannot be a monopsonist (buyer with market power), a monopoly (single seller with market power), or an oligopolistic firm (dominated by a small number of large sellers). The table does not provide enough information to determine if Gizmo's is a monopolistically competitive firm (many small sellers with differentiated products).

The Following Table Shows the Units of Output Sold at Different