The State of Competition in an Industry Is a Function

question 88

Multiple Choice

The state of competition in an industry is a function of

• A) the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry.
• B) competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products.
• C) competitive pressures associated with the threat of new entrants into the marketplace.
• D) competitive pressures associated with the bargaining power of suppliers and customers.
• E) All of these.

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Definitions:

Tradable Pollution Permits

A regulatory system that allows companies to buy or sell allowances for a specific amount of pollution, encouraging reduction in overall emissions.

Free Market

An economic system in which prices are determined by unrestricted competition between privately owned businesses.

Final Allocation

The ultimate distribution of goods, services, or resources among different parties or locations.

Corrective Tax

A tax designed to encourage or discourage certain behaviors or activities by including the cost of externalities, aimed at correcting market outcomes to reflect social costs or benefits.