If a firm has significant market power, say, over 40 percent, the probability is high that
a. in the long run profits will be zero
b. the industry is oligopolistic
c. the market is highly competitive
d. sales are quite high
e. the industry wherein the firm operates has a low four-firm concentration ratio
B
You might also like to view...
A partnership can raise funds for expansion in which of the following ways?
A) issuing stock through secondary markets B) taking on more partners C) issuing stock through financial markets D) all of the above
As of 2013, the outstanding U.S. currency is more than $1 trillion, which suggests that the typical U.S. citizen holds $3,600 in cash. Is this an accurate inference? Why?
A) Yes; because dividing total currency by total U.S. population roughly works out to $3,600 per person. B) No; because criminals and foreigners hold large sums of dollars, so the average citizen holds far less. C) No; because the average citizen probably does not have $3,600 in her checking account. D) Yes; because the Fed rarely makes accounting mistakes when computing M1. E) none of the above
Outsourcing is a logical extension of David Ricardo's 1817 _____________
a. Theory of Pro-Active Stress b. Peter Principle c. Theory of Comparative Advantage d. Theory of Dometic Economics
A perfectly competitive firm's short-run supply curve is the:
a. demand curve above the marginal revenue curve. b. same as the market supply curve. c. marginal cost curve above the average variable cost curve. d. average total cost curve.