Which of the following statements is not true?
a. Oligopolies usually have few firms each with some significant degree of market power
b. Only a small percentage of industries have four-firm concentration ratios above 85 percent.
c. Market price is related to the concentration ratio.
d. The United States is becoming more oligopolistic.
e. Karl Marx believed the United States was becoming more oligopolistic.
D
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After a firm makes both short and long run adjustments in its production plan following a reduction in the wage,
A. the marginal product of labor will be higher. B. the marginal product of labor will be lower. C. the marginal product of capital will be unchanged. D. the marginal product of capital may be higher or lower depending on the degree of substitutability between capital and labor. E. (a) and (c) F. (a) and (d) G. (b) and (c) H. (b) and (d)
A typical wheat farmer would never consider cost-plus-markup pricing because
A) he cannot clearly estimate his costs. B) the most profitable price he can ask for is the prevailing market price. C) the government won't allow it. D) he is a price searcher.
Consider the market for heart transplants. The demand for a heart transplant is perfectly inelastic and the supply curve is upward sloping
If a $1,000 tax per transplant tax is imposed on buyers (the recipients), how will the tax be divided between the buyer and seller? A) The sellers will pay the entire tax. B) The buyers will pay the entire tax. C) The tax will be evenly divided between the sellers and buyers. D) More information is needed to determine how the tax is split.
Suppose the natural rate of unemployment is 5%, with full-employment output of $7000 billion. Use Okun's Law to calculate the level of national output if the unemployment rate is 7%
What will be an ideal response?