Question

1. A group of teens in your town meet and agree to charge a flat fee of five dollars per hour for babysitting. They charge the same rate no matter how many children there are, or when the service is needed. Then they divide areas of town on a map between them, agreeing to only serve customers within their respective areas. Within weeks they have gained most of the business in town, driving out other teens that cannot lower their rates. The babysitting market in your town has become
A. monopolistically competitive

B. an oligopoly

C. purely competitive

D. a monopoly



2. Your friends own a hair salon, buying it from a couple who decided to retire. Eventually, your friends buy a shampoo company which they use to supply their salon at a lower cost. This is an example of

A. creating an oligopoly

B. horizontal consolidation

C. ending an oligopoly

D. vertical consolidation


3. How do we know our current money has value?

A. It is backed by gold.

B. It has many security measures.

C. People talk about money a lot.

D. People accept it in exchange for goods or services.

Answer 1

i think for the first question; an oligopoly

for the third i think its; d. people accept it in exchange for goods and services.

im not sure about the 2nd maybe b or d

Answer 2

Answer:

1. an oligopoly

An oligopoly is defined as a state of limited competition, where the market is shared by a small number of producers or sellers.

2. vertical consolidation

Vertical consolidation is a process which is used by companies to help them increase their control over the construction and distribution of a product.

3. People accept it in exchange for goods or services.

The value of money is defined when the particular amount is used to purchase something. Like if we spend $50 for movie tickets, we know the value of $50.