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Which of the Following Is True of the Industrial Organization

Question 44

Multiple Choice

Which of the following is true of the industrial organization (IO) economics model?


A) Industry structure determines firm performance, which determines strategy and conduct.
B) Original goal - help regulators set policy to minimize the ability of firms to earn excess profits.
C) Strategists avoid the IO model to try to earn above-average returns (excess profits) .
D) All of the above are true.

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