In the S-C-P model, ________ refers to the strategies that firms in an industry implement.
A) structure
B) strategy
C) conduct
D) performance

Question

Quizplus · Accepted Answer

In the S-C-P model, structure refers to the characteristics of the market (e.g. number of firms, barriers to entry), conduct refers to the behavior of the firms in the market (e.g. pricing, advertising), and performance refers to the outcomes of the market (e.g. profits, consumer surplus). Therefore, the correct answer is C, strategy, as it refers to the specific actions and behaviors that firms in an industry implement as part of their conduct.

In the S-C-P Model, ________ Refers to the Strategies That