Suppose there are 8 firms in an industry, and each has a different market share. If the largest firm has twice the market share of the second largest, which has twice the market share of the third largest (and so on to the eighth firm), what is the approximate four-firm concentration ratio?
a. 65 percent
b. 84 percent
c. 94 percent
d. 60 percent
e. 50 percent
C
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In the above figure, if the firm increases its output from Q1 to Q2, it will
A) reduce its marginal revenue. B) increase its marginal revenue. C) decrease its profit. D) increase its profit.
When costs that vary with the level of output are divided by the output, you have calculated
a. total changing cost. b. total fixed cost. c. average fixed cost. d. average variable cost.
Consider an identical basket of goods in both the U.S. and Taiwan. For a given nominal exchange rate, in which case is it certain that the U.S. real exchange rate with Taiwan falls?
a. the price of the basket of goods rises in the U.S. and Taiwan. b. the price of the basket of goods rises in the U.S. and falls in Taiwan. c. the price of the basket of goods falls in the U.S. and rises in Taiwan. d. the price of the basket of goods falls in both the U.S. and Taiwan.
Which of the following is not associated with strikes?
A. Strike duration is generally procyclical. B. If the union makes wage offers, it will likely do so according to a downward-sloping resistance curve. C. Strikes are costly to the union. D. Strikes are costly to the firm. E. The probability of striking is generally procyclical.