Inter industry competition refers to the fact that:
A. Monopolistic producers establish a common price for their products
B. Products are identical in a purely competitive industry
C. Firms which sell a product at one stage of production buy materials and parts from other firms at prior stages of production
D. In some markets the producers of a certain commodity might face competition from products of other industries
D. In some markets the producers of a certain commodity might face competition from products of other industries
You might also like to view...
If the cross-price demand curve for capital (relative to the wage) is vertical, the short run response by a firm to an increase in the wage is the same as its long run response.
Answer the following statement true (T) or false (F)
If a price reduction leads to larger total revenue, demand is
a. perfectly inelastic b. inelastic c. unit elastic d. elastic e. perfectly elastic
Consider an industry that is made up of six firms with the following market shares: Firm A - 50%, Firm B - 20%, Firms C and D - 10% each, and Firms E and F - 5% each. What is the value of the Herfindahl-Hirschman Index?
A) 2,500 B) 3,150 C) 8,100 D) 10,000
Which of the following ideas are NOT demonstrated by the PPF?
a. Efficiency b. Scarcity c. Opportunity cost d. Diminishing returns to scale