Suppose the market for good X has a four-firm concentration ratio of 0.70. Having worked for the four largest firms in the industry, you know the sales for these four firms are given by $200,000, $225,000, $250,000, and $275,000. Based on this information, we know that sales for the remaining firms in the industry are:
A. $407,143.
B. $943,332.
C. $687,500.
D. $550,500.
Answer: A
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If a firm functions in an oligopoly, it is:
A. one of a large number of firms that produce a good with no close substitute. B. the only firm that produces a good with no close substitutes. C. one of a large number of firms that produce goods that are either close or perfect substitutes. D. one of a small number of firms that produce goods that are either close or perfect substitutes.
Assume that a perfectly competitive firm hires workers from a perfectly competitive market for labor. The marginal product of a worker is 10 units per day
If the good that the worker produces is sold for $5, what is the maximum daily wage that should be offered to the worker?
The smaller the percentage of voters required for collective action, the higher the external costs
a. True b. False
Oligopolies would like to act like a
a. duopoly, but self-interest often drives them closer to the perfectly competitive outcome. b. competitive firm, but self-interest often drives them closer to the duopoly outcome. c. monopoly, but self-interest often drives them to charge a higher price than would be charged by a monopoly. d. monopoly, but self-interest often drives them closer to the perfectly competitive outcome.