What Can Be Said Regarding the Role of Industry Structure

question 105

Multiple Choice

What can be said regarding the role of industry structure on setting price?

• A)In an industry in which there are many buyers and sellers,the pricing impact of any single firm will be fairly small.
• B)In industry in which there are many buyers and sellers,the pricing impact of any single firm will be quite large.
• C)Marketers should make pricing decisions irrespective of whether there are many or few competitors in the industry.
• D)In an industry in which a small number of firms compete,the pricing impact of any single firm will be fairly small.
• E)In an industry in which there are many buyers and sellers,firms will typically match the price of competitors.

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Definitions:

Diseconomies Of Scale

refers to a situation where, as a company or business expands, its production costs increase, leading to a decrease in efficiency.

Resource Endowments

The natural resources, capital, and other economic assets that a country possesses, impacting its economic potential.

World Price

The international market price of a good or service, determined through global supply and demand interactions.

Diminishing Returns

The principle that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after reaching an optimal level.