Firms in the Same Industry

question 13

Multiple Choice

Firms in the same industry

• A) are equally productive, in the sense that if they are operating efficiently, they all produce the same output.
• B) are not necessarily equally productive, in the sense that if they are all operating efficiently, they may not produce the same output.
• C) all have access to the same technologies and inventions and therefore produce the same output from the same inputs.
• D) are directed by government regulations to produce the same levels of output.