Eleanor Alback is an equity research analyst working on a report on the semiconductor industry in the country Sillikon. The price of semiconductor chips is quite low. Since it is an important input in the production of personal computers, she feels that firms could increase prices without drastically affecting sales. However, it appears that none of the firms are interested in hiking the price of their product despite high demand. Lan Shih, who works at a government think-tank, attributes the low prices to intense price wars between the firms.
Which of the following, if true, would weaken Lan's claim that price-war is the cause of low prices?
A.
The skilled engineers that the industry hires are very well-paid.
B.
Although many firms in this industry own patents on their products, similar products are almost always introduced by a rival firm for a lower price.
C.
Some commentators feel that the growth in this industry can only be sustained with continuous innovation.
D.
Existing firms in the semiconductor industry consciously target different market segments that are mutually exclusive.
E.
The boom in the semiconductor industry led to productivity gains in many industries that use semiconductors.