What does it mean when the products sold by the firms in an industry are homogeneous?
A. The product sold by one firm is a perfect substitute of the product sold by another firm in the same industry.
B. Firms in the industry can produce the same product with different inputs.
C. The product sold by one firm is a perfect complement of the product sold by another firm in the same industry.
D. All firms in the industry are identical in size.
Answer: A
Economics
You might also like to view...
Explain why choices respond to incentives and think of three incentives to which you have responded today
What will be an ideal response?
Economics
Refer to Table 8.1. That the firm is perfectly competitive is evident from its
A) increasing marginal cost. B) increasing total cost. C) zero economic profits. D) constant marginal revenue. E) absence of marginal values at Q = 0.
Economics