The Rule of Three States That the Third Company in an Industry

question 186

True/False

The rule of three states that the third company in an industry has little chance of survival.

---

Definitions:

Indifference Curves

Visual diagrams in microeconomics that display the mix of two products which provide the same level of pleasure and usefulness to a purchaser.

Indifference Map

A set of indifference curves, each representing a different level of utility, that together show the preferences of a consumer.

Budget Constraint

outlines the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.