Hayashi showed that for a perfectly competitive industry with linearly homogenous production and cost functions, marginal Qequals average Q. We know that these conditions are highly restrictive and unrealistic. Nevertheless, which industry among these do you believe comes close to satisfying the Hayashi assumptions. Hint: A perfectly competitive industry is characterized by no barriers to entry or exit, contain large number of firms who are price takers and produce goods that are homogeneous Select one: O a. Textile/Clothing Industry b. Agricultural Industry O c Entertainment Industry d. Oil & Gas Industry One conclusion drawn by Fazzari Hubbard and Petersen is that firm heterogeneity plays an important role in determining the impact of imperfect capital markets of investments. What type of heterogeneity is FHP referring to? Select one: O a Differences in firms' access to external finance O b. Differences across manufacturing industry categories O c Differences in firms retention of cash flow O d. All of the above