If a Firm Is Operating in an Environment That Is

question 31

Multiple Choice

If a firm is operating in an environment that is customized to home market,which of the following is the most preferred strategy? 

• A) Collusion strategy 
• B) Dodger strategy 
• C) Extender strategy 
• D) Contender strategy

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Definitions:

Perfect Competitor

A market participant that cannot influence the market price and must take it as given because the market is perfectly competitive.

Short Run

A period in economic theory during which at least one input, such as plant size or the number of firms in the industry, is fixed and cannot be changed.

Perfect Competitor

A theoretical market structure in which many firms sell an identical product, and no single buyer or seller can influence the market price.

Perfectly Competitive Industry

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect the market price.