The profit earned by an industry is likely to be low if the
A. degree of rivalry among industries is low.
B. industry has only a few large customers.
C. product produced in the industry has only a few substitutes.
D. industry has many customers.
Answer: B
You might also like to view...
Based on the data in Table 3.1, if Jesse and April choose to specialize and trade, then
A) April will specialize in painting snowboards and trade snowboards for kites. B) Jesse will specialize in painting snowboards and trade snowboards for kites. C) April will specialize in painting kites and trade kites for snowboards. D) None of the above; specialization and trade are not beneficial for Jesse and April.
Under conditions of perfect competition, average fixed cost
a. rises as output increases. b. falls as output increases. c. decreases then rises. d. increases and then falls.
In the short run, consumers typically ____ to price changes (when compared to the long run)
a. are very responsive b. are more demand sensitive c. are less demand sensitive d. do not respond at all e. overreact
The classical model is a poor predictor of short-run economic fluctuations in part because it assumes that
a. all workers wish to work b. government will prevent these fluctuations c. the labor market always clears d. the long run is just a series of short-run periods e. labor demand curve is stable