Which of the Following Is True of the Industrial Organization

question 87

Multiple Choice

Which of the following is true of the industrial organization (IO) economics model?

• A)Industry structure determines firm performance, which determines strategy and conduct.
• B)Original goal - help regulators set policy to minimize the ability of firms to earn excess profits.
• C) Strategists avoid the IO model to try to earn above-average returns (excess profits).
• D) All of the above are true.

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Definitions:

Job Characteristics

Encompass the attributes, roles, responsibilities, and overall environment of a particular job that influence the job holder's motivation and satisfaction levels.

Human Capital

Human capital refers to the set of skills, knowledge, abilities, and attributes embodied in individuals that can be utilized to create economic value.

Financial Assets

Financial assets are intangible assets representing ownership of value, such as stocks, bonds, or bank deposits.

Compensating Differential

A difference in wage rates designed to offset the desirability or undesirability of a job, based on its non-monetary characteristics.