Intensity of Competition in Lower- Return Industries

question 13

Multiple Choice

Intensity of competition in lower- return industries.

• A)is highest
• B)is lowest
• C)fluctuates
• D)is non- existent
• E)is not important

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Definitions:

Equilibrium

An equilibrium where demand meets supply in the marketplace, stabilizing prices as a consequence.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Equilibrium Wage Rate

The wage rate at which the supply of labor is equal to the demand for labor in the labor market.

Economic Rents

Payments to a factor of production in excess of what is needed to keep that factor in its current use, often due to limited supply or unique attributes.