Question

What is the main lesson from looking at the firm-level productivity distribution for India, China, and the United States?

Select one:

a. All American firms are approximately same

b. India and China have a relatively large mass of unproductive firms

c. Chinese firms have the highest average productivity.

d. American firms are more likely to be successful

Answer 1

All American companies are not same because each company has different amount of productivity and management style which determines the the success of each organisation and India and China have a lot of productive forms and not unproductive two firms under the belt due to the economic reforms they have been taking and also there is no guarantee that American firms will likely be successful on the whole because there are many companies from America which defaulted due to lack of liquidity and various other reasons

Therefore (a,b,d) are wrong

Now it can be mentioned that Chinese firms are mostly successful because of their productivity where the batch production is in heavy quantities and that is the reason why China is number one supplier of many goods in the world due to their productivity and economies of scale

Therefore (c) is the answer to this question