Which of the following is not a shortcoming of the concentration ratio as a measure of the extent of competition in an industry?
A) Concentration ratios are calculated for the national market, even though the competition in some industries is mainly local.
B) Concentration ratios do not address the fact that competition sometimes exists between firms in different industries.
C) Concentration ratios assign weights to only the four largest firms in an industry.
D) Concentration ratios do not include sales in the United States by foreign firms.
C
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Marginal benefit is the benefit ________ one more unit of the good and ________ of the good increases
A) of producing; increases as production B) of producing; decreases as production C) from consuming; increases as consumption D) from consuming; decreases as consumption
One reason that explains why the short-run aggregate supply curve is upward sloping is:
A. the lag involved with public policy making. B. the changing profit levels experienced by firms. C. sticky wages. D. cartels keeping prices artificially high.
After firm A acquired firm B, it lowered the prices for the goods produced by both firms. This can increase profits if the goods are
a. Substitutes b. Complements c. Not related d. None of the above
If the nominal interest rate is 3 percent and the inflation rate is 4 percent, then the real interest rate is
a. 7 percent. b. -1 percent. c. 3 percent. d. 4 percent.