All of the following are considered to be problems associated with the use of concentration ratios to measure market power except:
A) the market definitions used in their construction may be arbitrary.
B) two different markets with the same concentration ratio may have very different distributions of market share among firms used to calculate the concentration ratio.
C) consideration of exports and imports generally causes concentration ratios to be overstated.
D) concentration ratios are often based on national statistics and may not reflect substantial concentration in a market at a more localized level.
C
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If velocity is 6 and the quantity of money is $2 trillion, what is nominal GDP?
A) $12 trillion B) $6 trillion C) $3 trillion D) $333 billion
If the price of the Brazilian real is 60 cents and a U.S. resident purchases a Brazilian-manufactured item for 60,000 real, there will be
A) a quantity demanded of 60,000 real and a quantity supplied of $60,000. B) a quantity demanded of 60,000 real and a quantity supplied of $36,000. C) a quantity demanded of 60,000 real, but we cannot determine the effect in the market for dollars. D) a quantity supplied of 60,000 real and a quantity demanded of 60,000 yen.
According to the graph shown, the monopolistically competitive firm:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. will earn positive profits equal to area A.
B. will earn positive profits equal to area C.
C. will earn negative profits (a loss) equal to area A.
D. will earn negative profits (a loss) equal to area B.
An increase in planned investment will shift the _____
a. aggregate demand curve rightward b. aggregate demand curve leftward c. aggregate supply curve rightward d. aggregate supply curve leftward e. consumption function upward