In Order to Be Useful,a Factor Which Has Been Identified

question 17

Multiple Choice

In order to be useful,a factor which has been identified during factor analysis should have an eigenvalue greater than:

• A)5.0.
• B)0.5.
• C)1.0.
• D)10.0.

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Definitions:

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, allowing them some power to set prices due to product differentiation.

Purely Competitive

A market structure characterized by many sellers offering identical products, with no single seller able to influence the market price.

Perfectly Elastic

A situation in which the quantity demanded or supplied responds infinitely or massively at a particular price point.

Herfindahl Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares for all firms in the market.