The key question of where to compete in competitive markets is addressed by which of the following?

• A. Government intervention
• B. Price discrimination
• C. Production possibility frontier
• D. Market structure analysis

Answer: (D)

Verified step by step guidance

1. Understand the question: It asks which concept addresses the key question of where to compete in competitive markets.
2. Review each option's meaning: Government intervention involves rules and policies, price discrimination relates to charging different prices to different consumers, and the production possibility frontier shows trade-offs in production capacity.
3. Recognize that 'Market structure analysis' studies the characteristics of different market types (like perfect competition, monopoly, oligopoly) and helps firms decide where and how to compete.
4. Conclude that analyzing market structures provides insights into competitive behavior, entry barriers, and strategic positioning, which directly answers the question of where to compete.
5. Therefore, the correct approach to the question is through market structure analysis, as it focuses on the competitive environment and strategic decisions.