Asked by
Jessie Jones
on Nov 26, 2024Verified
Interindustry competition refers to the fact that
A) oligopolistic producers establish a common price for their products.
B) products are identical in a purely competitive industry.
C) firms that sell a product at one stage of production buy materials and parts from other firms at prior stages of production.
D) in some markets, the producers of a certain commodity might face competition from products of other industries.
Interindustry Competition
Competition among firms that operate in different industries but compete for the same set of customers or inputs.
Oligopolistic Producers
Firms within a market structure where a small number of companies have the majority of market share and thus can significantly influence price and production levels.
Purely Competitive
Describes a market structure where many sellers offer identical products, and no single seller can influence the market price.
- Understand the concept of interindustry competition and its relevance to oligopolistic markets.
Verified Answer
VP
Learning Objectives
- Understand the concept of interindustry competition and its relevance to oligopolistic markets.