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Which of the following is not a characteristic of the broiler chicken industry? Question 8 options:...

Which of the following is not a characteristic of the broiler chicken industry?

Question 8 options:

A significant degree of industry concentration, with the four largest firms producing 40 percent of the industry's output.

A significant degree of real and subjective product differentiation.

An inability of individual firms to have any influence market price.

A significant amount of advertising.
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Answer #1

A broiler chicken industry can have many firms in the market. It is a case of imperfect competition where there may exist significant degree of industry concentration but also the presence of many other small sized firms. Due to this factor, any individual firm cannot influence the market price since if it increases the price, its market share will decrease as the consumers would move to another broiler.

Also there exists differences among the poultry and chicken produced which may be either genuine or subjective on people's choices. Thus there exists significant amount of product differentiation.

There is no requirement for significant advertising component in this industry since this industry contains many firms and no= firm can achieve monopoly in this sector.

Correct Ans - D

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