Which of the following is a problem associated with judging competitiveness by structure?
A. It is difficult to determine the relevant market and the relevant industry necessary to identify the structural competitiveness of any industry.
B. It requires that each action of a firm be analyzed on a case-by-case basis, which is very time- consuming and expensive.
C. Structure can be a predictor of future performance.
D. Whether the actions of a firm can be considered appropriate competitive behavior depends on the circumstances.
Answer: A
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 15, the price must be
A) $0. B) $6. C) $9. D) $15.
The table above shows the balance sheet for Ralph's Bank. If the desired reserve ratio is 15 percent, Ralph's Bank has desired reserves of ________
A) $375 B) $2,500 C) $500 D) $450
If high level of corruption in a country deters foreign investment in worthy projects, this is known as
A) portfolio investment. B) moral hazard. C) foreign direct investment. D) adverse selection.
Suppose that the federal government imposes a price floor (support price) in the milk market at a price of $3 per gallon. If market quantity demanded at $3 is 1 billion gallons, and if market quantity supplied is 1.5 billion gallons, then which of the following is true?
a. There is a surplus of 1 billion gallons of milk, and the federal government will buy 1.5 billion gallons to maintain the $3 price. b. There is a shortage of 500 million gallons of milk, and the federal government will buy 1 billion gallons to maintain the $3 price. c. There is a shortage of 500 million gallons of milk, and the federal government will buy an additional 500 million gallons to maintain the $3 price. d. There is a surplus of 500 million gallons of milk, and the federal government will buy this 500 million gallons to maintain the $3 price.