Asked by ELIZABETH SOLDATI on Sep 24, 2024
Verified
Which of the following is true according to the IO perspective?
A) Industry structure determines firm conduct which in turn determines firms' performance
B) Industry structure determines firm performance which in turn determines firms' conduct
C) Industry conduct determines firm structure which in turn determines firms' performance
D) Industry performance determines firm conduct which in turn determines firms' structure
IO Perspective
Stands for Industrial Organization Perspective, focusing on the behaviors, structures, and policies affecting industries, including competition and regulation.
- Acquire understanding of the Industrial Organization (IO) viewpoint regarding industry architecture, efficacy, and strategic superiority.
Verified Answer
NA
Nahid Ahmedabout 22 hours ago
Final Answer :
A
Explanation :
According to the IO perspective, industry structure (such as the number and size of firms and barriers to entry) determines firm conduct (such as pricing and advertising strategies), which in turn determines firms' performance (such as profitability).
Learning Objectives
- Acquire understanding of the Industrial Organization (IO) viewpoint regarding industry architecture, efficacy, and strategic superiority.
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