For Years, Economists Believed That Market Structure Explained the Ability

question 199

Multiple Choice

For years, economists believed that market structure explained the ability of some firms to earn economic profits.Today, economists and business strategists put greater emphasis on

• A)the number of years a firm has been in business and the average price of the products sold by the firm.
• B)the number of countries in which a firm conducts business and the number of employees the firm has in each country.
• C)the characteristics of individual firms and the strategies their managements use to continue to earn economic profits.
• D)the size of a firm relative to the industry average and the number of firms in the domestic industry.

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Definitions:

U.S. Income Distribution

The way in which total income is shared among the population of the United States.

Crowding Model

A theory or model that explains how public sector involvement can displace or reduce private sector activity in certain markets.

Occupational Segregation

The division of labor in which different groups of workers, often based on gender, ethnicity, or race, are systematically allocated different kinds of jobs.

White Males

Refers to adult individuals of the male gender who are identified as being of European descent or belonging to a demographic group characterized by light skin pigmentation.