3. Thefollowing facts characterize the furnitureindustryin the United States:39a. Theindustry has been very fragmented, so thatfewcompanies have the financial backing tomakeheavy investments in new technology andequipment.b. In1998, only three U.S. furniture manufacturershadannual sales exceeding $1 billion. Thesefirmsaccounted for only 20 percent of the marketshare,with the remainder split among 1,000othermanufacturers.c.Capital spending at one manufacturer,FurnitureBrands, was only 2.2 percent ofsalescompared with 6.6 percent at FordMotorCompany. Outdated, labor-intensiveproductiontechniques were still being usedbymany firms.d.Furniture manufacturing involves a huge numberofoptions to satisfy consumer preferences,butthis extensive set of choices slows productionandraises costs.e.Small competitors can enter the industry becauselargemanufacturers have not built upanyoverwhelming advantage in efficiency.f. TheAmerican Furniture ManufacturersAssociationhas prepared a public relationscampaignto “encourage consumers to partwithmore of their disposable income onfurniture.”g. Infall 2003, a group of 28 U.S. furniture manufacturersaskedthe U.S. government to imposeantidumpingtrade duties on Chinese-made bedroomfurniture,alleging unfair pricing.h. Theglobalization of the furniture industrysincethe 1980s has resulted from technologicalinnovations,governmental implementationofeconomic development strategiesandregulatory regimes that favor global investmentandtrade, and the emergence offurnituremanufacturers and retailers withacapacity to develop global production anddistributionnetworks. The development ofglobalproduction networks using Chinesesubcontractorshas accelerated globalizationinrecent years.Discusshow these facts are consistent with themodelof perfect competition.