The economic way of thinking would approach the question "Is this industry competitive?" by
A) counting the number of firms in the industry.
B) comparing the ratio of prices to costs across the industry.
C) assessing the freedom of entry into the industry.
D) evaluating the actual structure of the industry to the competitive standards articulated in antitrust legislation.
C
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Refer to Figure 28-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough
A) the short-run Phillips curve would shift up. B) the economy would stay at point C in the long run. C) the economy would move back to point A. D) the short-run Phillips curve would shift down.
Initially, a consumer is at an optimum. Then the price of Y increases. Consequently
A) MUX/PX < MUY/PY. B) MUX/PX > MUY/PY. C) MUX/PX = MUY/PY. D) MUX > MUY.