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Eleanor Alback is an equity research analyst working on a report on the semiconductor industry in the country Sillikon. The price of semiconductor chips is
Eleanor Alback is an equity research analyst working on a report on the semiconductor industry in the country Sillikon. The price of semiconductor chips is quite low. Since it is an important input in the production of personal computers, she feels that firms could increase prices without drastically affecting sales. However, it appears that none of the firms are interested in hiking the price of their product despite high demand. Lan Shih, who works at a government think-tank, attributes the low prices to intense price wars between the firms. Which of the following, if true, would strengthen Lan's claim that price-war is the cause of low prices? O A. The global semiconductor industry was founded and continues to be based in the country Sillikon. O B. With the removal of import quotas, the semiconductor market has been flooded with cheaper products O C. Following a series of mergers in this industry, some of the largest firms in Sillikon are now vertically integrated with their suppliers. O D. Most firms in this industry export semiconductors to other countries. O E. The personal computer industry is an industry which has the least amount of government regulation in Sillikon
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