The largest firm in Industry J has a 90% market share, while the remaining ten firms each has a one percent share. The largest firm in industry K has a 80% market share, while the other two firms each has a 10% share. Which statement is true?
A. Industry J has a higher concentration ratio than industry K.
B. Industry K has a higher concentration ratio than industry J.
C. The industries have the same concentration ratio.
D. None of these statements are true.
A. Industry J has a higher concentration ratio than industry K.
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Economists point out that the strong inflow of undocumented workers to some extent reflects the:
A. Increasing return to capital in the United States B. Increasing scarcity of unskilled labor in other countries C. More lenient immigration laws D. Increasing scarcity of domestic unskilled labor in the United States
Use the following information to answer the next question.Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10% interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 each. Of the $75, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. The explicit costs of Harvey's firm in the first year were
A. $655,000. B. $605,000. C. $825,000. D. $150,000.
Trade restrictions tend to make domestic products
A) cheaper because they do not have to compete with foreign goods. B) cheaper because they do have to compete with foreign goods. C) more expensive because they have to compete with foreign goods. D) more expensive because they do not have to compete with foreign goods.
An increase in the deadweight loss (DWL) means
A) an additional reduction in welfare by one group that is not offset by a gain to another group. B) an additional reduction in welfare by one group that is offset by a gain to another group. C) an additional increase in welfare by one group that is not offset by a gain to another group. D) an additional increase in welfare by one group that is offset by a gain to another group.