Which of the following statements is true about the U.S. industrial market?

• A. The U.S. industrial market is characterized by a large number of buyers and sellers, leading to high competition.
• B. The U.S. industrial market only includes firms that produce consumer goods.
• C. The U.S. industrial market does not interact with international markets.
• D. The U.S. industrial market is dominated by a single firm that sets prices for all products.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the definition of the U.S. industrial market. It consists of firms and buyers involved in producing and purchasing goods used in further production, not just consumer goods.
2. Step 2: Recognize that the U.S. industrial market typically has many buyers and sellers, which leads to competitive market conditions rather than domination by a single firm.
3. Step 3: Consider the role of international trade. The U.S. industrial market interacts with global markets through imports and exports, so it is not isolated.
4. Step 4: Evaluate each statement based on these characteristics: the market includes many firms (not just consumer goods producers), it is competitive (not monopolized), and it interacts internationally.
5. Step 5: Conclude that the statement claiming the U.S. industrial market has many buyers and sellers leading to high competition is true, while the others are false.