If SA Has a Positive Capital Inflow, What Does This

question 4

Multiple Choice

If SA has a positive capital inflow, what does this signify?

• A)Nothing.
• B)That the government is running a budget deficit.
• C)That more funds were invested in SA by foreigners than SA invested abroad.
• D)That SA is running a trade surplus.

Learn to calculate and interpret the Herfindahl index as a measure of market concentration.

Understand the concept of interindustry competition and its relevance to oligopolistic markets.

Recognize the significance of concentration ratios in understanding market structure and competition levels.

Comprehend the basic principles of game theory and their application to oligopoly behavior and strategy.

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Definitions:

Decreasing-Cost Industry

An industry in which costs per unit decline as the industry scales up production, often due to economies of scale.

Average Cost

The total cost of production divided by the quantity of the product produced, indicating the cost per unit of output.

Industry's Output

The total production of goods or services generated by all firms operating within a specific industry.

Decreasing-Cost Industry

An industry characterized by a downward-sloping long-run supply curve, indicating lowering costs as industry output increases.