Question

Which of the following is not a determinant of market structure?

a) the number of sellers.
b) the nature of the product.
c) the ease of entering the industry.
d) the capital-labor ratio of the firm.
e) the market share of the sellers.

Answer 1

The capital-labor ratio of the firm is not a determinant of market structure.

Step-by-step explanation:

The correct answer is d) the capital-labor ratio of the firm.

The determinant of market structure refers to the factors that influence how competitive an industry is. These determinants include the number of sellers, the nature of the product, the ease of entering the industry, and the market share of the sellers.

The capital-labor ratio of the firm, on the other hand, relates to the firm's production process and efficiency, but it does not directly determine the market structure.