The four-firm concentration ratio for an industry is
A. the number of firms in the industry, divided by four.
B. the share of industry output sold by the four largest firms in the industry.
C. the percentage of total industry profits claimed by the four largest firms.
D. the share of industry output sold by the fourth largest firm in the industry.
Answer: B
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When a nation removes restrictions on imported products we will see
A. an increase in consumer surplus and a decrease in producer surplus. B. a decrease in consumer surplus and an increase in producer surplus. C. an increase in consumer surplus and an increase in producer surplus. D. a decrease in consumer surplus and an decrease in producer surplus.
Scarcity is a concept that applies to all of the following except
a. time. b. natural resources. c. human wants. d. machinery.
Herbert Simon, one of the first social scientists to work at the boundary of economics and psychology, suggested that humans should be viewed not as rational maximers but as
One way for firms to analyze their choices in an oligopoly is by using:
A. cost minimization theory. B. marginal revenue maximization strategy. C. game theory. D. None of these is an effective method for oligopolists.