Suppose That Industry X and Industry Y Have Intra­industry

question 98

Multiple Choice

Suppose that industry X and industry Y have intra­industry
Trade indexes equal to 0.80 and 0.20, respectively.Which of the
Following is then correct?

• A)There is a greater share of intra­industry trade in industry X than in industry Y.
• B)There is a greater share of intra­industry trade in industry Y than in industry X.
• C)Industry X and industry Y have equal shares of intra­industry trade.
• D)There is no intra­industry trade in either industry X or industry Y.

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.

Purchases

The act of buying goods or services.

Product X

A placeholder name used to refer to a generic or unspecified product in economic and marketing contexts.

Rational Consumer

The theoretical concept of a consumer who always makes decisions that provide the greatest benefit or utility according to their preferences.