The concentration ratio computed nationally tends to understate the market power in local markets.
Answer the following statement true (T) or false (F)
True
Concentration ratios do not necessarily convey the extent to which market power may be concentrated in a local market. In fact, many industries, including newspapers, with low concentration ratios nationally are represented by just one or a few firms locally.
You might also like to view...
Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price decreases from $20 to $18 is
A. -1.37. B. -0.33. C. -3.29. D. -1.
Which of the following statements correctly describes a total product curve?
A) Points above the total produce curve are efficient. B) The curve shows that output always increases as labor employed increases. C) The curve separates attainable outputs from unattainable outputs. D) The curve shows minimum levels of output. E) The curve first falls, reaches a minimum, and then rises.
The currency adopted by most countries in ________ is referred to as the euro
A) Western Europe B) Europe and Asia C) Southern Europe and Northern Africa D) Eastern Europe
Applying neoclassical theory to the housing market, a higher marginal product of (housing) capital may be caused by ________
A) higher expected household income B) the inability to buy as much housing at a higher price C) an expected increase in the relative price of housing D) a decrease in the cost of building new houses