In the context of industrial organisation, the 'Structure-Conduct-Performance' paradigm suggests that:
A. Only performance matters
B. Conduct is independent of structure
C. Market structure determines firm conduct which in turn determines performance
D. Performance determines structure
Answer: Option C
Solution (By JKSSB Mock Tests)
The traditional SCP paradigm posits a causal chain from market structure (concentration, entry barriers) to firm conduct (pricing, advertising) to market performance (profits, efficiency).
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