Question

In the S-C-P model, ________ refers to the strategies that firms in an industry implement.

A) structure
B) strategy
C) conduct
D) performance

Answer 1

In the S-C-P model, 'conduct' refers to the strategies and behaviors that firms in an industry implement in response to the market structure.

Step-by-step explanation:

In the S-C-P model, which stands for Structure-Conduct-Performance, conduct refers to the strategies that firms in an industry implement. This model is used to understand the dynamics of an industry and assesses the relationships between the structure of the market, the competitive conduct of firms within the market, and the economic performance of those firms.

Structure describes the underlying elements like the number of firms, market concentration, and entry barriers. Conduct represents the behavior of firms in response to the market structure, which includes pricing strategies, product differentiation, and collusion. Finally, performance refers to the outcomes of the market structure and conduct, including profits, efficiency, and consumer welfare.