According to the SCP Model,what Is the Relationship Between Firms

question 15

Multiple Choice

According to the SCP model,what is the relationship between firms and their industries?

• A) The firm's structure determines the industry conduct and is not related to firm performance.
• B) The firm's conduct shapes the industry structure and leads to firm performance.
• C) The industry structure determines firm conduct and these combine to determine firm performance.
• D) None of these.

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Definitions:

NPV

Net Present Value, a method used in capital budgeting to analyze the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Internal Rate of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows zero.

Required Return

The minimum return an investor expects to achieve on an investment, considering the investment's risk level.

NPV

or Net Present Value, is a financial metric used to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.