If a Firm Competes in a Capital-Intensive Industry with Excess

question 50

Multiple Choice

If a firm competes in a capital-intensive industry with excess capacity,all of the following are true except:

• A) price increases will be less likely.
• B) price increases will be more likely.
• C) companies in competitive industries face high exit barriers.
• D) companies in competitive industries may experience future price decreases.

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Definitions:

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Female Professors

Educators at a college or university level who identify as female.

Prejudiced

Having preconceived opinions or judgments about someone or something without adequate knowledge, often leading to unfair treatment.

Scapegoats

Individuals or groups blamed for wrongdoings, mistakes, or faults, often without a basis for the blame.