The Most Intense Rivalry Results from _____________

question 24

Multiple Choice

The most intense rivalry results from _____________.

• A) numerous equally balanced competitors, slow industry growth, high fixed or storage costs
• B) few competitors, slow industry growth, lack of differentiation, high fixed or storage costs
• C) numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers
• D) a high level of differentiation

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Definitions:

Marginal Product

The additional output produced as a result of utilizing one more unit of a particular input.

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Optimal Employment

The level of employment where the economy is at its most efficient, producing the maximum output without causing inflationary pressures.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.