Suppose an industry is composed of 10 firms. Each firm's share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry is
A. 50 percent.
B. 45 percent.
C. 40 percent.
D. unable to determine.
Answer: A
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The price of cotton clothing falls. As a result,
A) the quantity demanded of cotton clothing increases. B) the demand for cotton clothing increases. C) the quantity demanded of cotton clothing decreases. D) the demand for cotton clothing decreases. E) both the demand for cotton clothing increases and the quantity demanded of cotton clothing increases.
A firm practices input substitution when it
a. retrains Joe the welder as a painter and Pat the painter as a welder. b. buys extra machines for its workers to use. c. allows fixed cost to become variable. d. replaces unskilled labor with automated machinery.
Which of the following is true?
a. The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of employment discrimination. b. After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of similar white men. c. If employers can hire equally productive minority employees at a lower wage than non-minorities, the profit motive provides a strong incentive to do so. d. Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity).
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. The federal government marketing order that helped reduce asymmetric information about kiwifruit led to:
A. a decrease in the spread between the price of New Zealand and U.S. kiwifruit. B. lower quality kiwifruit sales. C. more kiwifruit imports. D. lower kiwifruit sales.