Can pricing influence the structure of the industry

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Our term paper is based on the nature of an industry. At this time, you should identify the name of the industry that is of interest and its 6-digit NAICS code.

This week will focus on how industries vary in term annual shipments (sales); firm size( such as concentration ratio; market demand curve (elastic or inelastic); the role of technology (capital intensive vs labor intensive). The presence of these factors (CR4 and market size) may influence the pricing of products, and eventually the performance of the industry ( long run profit). Hence, this chapter will identify the link between structure, conduct , and performance. Can pricing (conduct) influence the structure of the industry - known as the reverse causation?

Reference no: EM132230096

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