In the 1960s, each firm in the computer industry was able to make extremely large profit margins, some as high as 50 to 60 percent. The margin decreased to 20 to 40 percent in the 1970s and to 10 to 20 percent in the 1980s. We conclude that:
A. lower profit margins were due to the government's regulation to protect consumers.
B. market power increased in the two decades.
C. the industry evolved from oligopolistic to a more competitive industry in the two decades.
D. lower profit margins were largely due to the mismanagement of computer firms.
Answer: C
You might also like to view...
The ratio of consumption to income is known as ________
A) the average propensity to consume B) the borrowing constraint C) the marginal propensity to consume D) subprime accommodation
Income is to money as
A. short story is to novel. B. video is to digital photo. C. song is to symphony. D. entree is to dessert.
In the Keynesian model, fluctuations in aggregate spending cause:
A. enhanced labor market mobility. B. changes in potential output. C. recessions and expansions. D. changes in average labor productivity.
Rent-seeking activities have been a major problem in the HPAE and contributed greatly to the Asian financial crisis
Indicate whether the statement is true or false