If a firm's product becomes a commodity
A) the firm gains market power.
B) the firm's strategy has apparently paid off.
C) the firm has become a monopoly.
D) the firm looses market power.
D
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How can regional concentration of firms in an industry lead to external economies of scale? Give examples of these types of industrial clusters in the United States. Are they always beneficial?
What will be an ideal response?
A positive statement is:
a. something good or desirable. b. a call for improvement. c. a statement of opinion. d. a statement testable by facts. e. a suggestion for policy.
In the long run, a firm will choose a plant size that has the
A. minimum average total cost of producing its target level of output. B. maximum level of resource use per unit of output. C. minimum of its average fixed cost. D. capacity to produce the largest quantity of output.
Suppose total benefits and total costs are given by B(Y) = 100Y ? 8Y2 and C(Y) = 10Y2. What is the maximum level of net benefits (rounded to the nearest whole number)?
A. 139 B. 92 C. 78 D. None of the statements associated with this question are correct.