Scenario 16-1 Suppose the Following Are the Sales for All of the of the Firms

question 84

Multiple Choice

Scenario 16-1
Suppose the following are the sales for all of the firms in two different industries.

-Refer to Scenario 16-1. Which of the following statements is correct regarding the competitiveness of these two industries?

• A) Industry A and Industry B are equally competitive.
• B) Industry A is more competitive than Industry B.
• C) Industry A is less competitive than Industry c.
• D) The competitiveness of these two industries cannot be determined from the information given.

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Definitions:

Economic Motives

The underlying reasons that guide individuals or entities to make decisions regarding the allocation of resources.

Disposable Income

This is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Consumption

refers to the total amount of goods and services bought and used by households and individuals.

Savings Rate

The portion of disposable income not spent on consumption of goods and services but saved or invested, usually expressed as a percentage of disposable income.