Industry A has four firms. The largest firm in Industry A has more than 90 percent of the market share. Industry B also has four firms, but each of those four firms in Industry B has 25 percent of the market share. The Herfindahl-Hirschman index will be
A. larger for Industry A than Industry B, but the four-firm concentration will be the same.
B. the same for both industries, but the four-firm concentration will be larger for Industry A than Industry B.
C. larger for Industry B than Industry A, but the four-firm concentration will be the same.
D. the same for both industries, but the four-firm concentration will be larger for Industry B than Industry A.
Answer: A
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The most important reason for our slow rate of productivity growth over the last three decades (of those listed below) is
A. lagging business sales. B. foreign imports. C. our low savings rate. D. high tax rates.
Which of the following conditions correctly describes a Nash equilibrium when two firms are in the market?
A. ?1(s1*, s2*) ? ?1(s1, s2*) for all s1. B. ?1(s1, s2*) ? ?2(s1*, s2*) for all s1 and ?2(s1*, s2) ? ?1(s1*, s2*) for all s2. C. ?1(s1*, s2*) ? ?1(s1, s2*) for all s1 and ?2(s1*, s2*) ? ?2(s1*, s2) for all s2. D. ?1(s1*, s2*) ? ?2(s1, s2*) for all s1 and ?2(s1*, s2*) ? ?1(s1*, s2) for all s2.
Which of the following best describes the marginal cost of labor?
A. The cost paid by the consumer, through a higher price, when a firm must raise prices to cover the cost of hiring an additional employee B. The additional cost to the firm of hiring one more unit of labor C. The additional cost to the firm of the taxes, fringe benefits, and office space that one more worker will require D. The additional cost to the firm of producing the additional product that will be sold because of hiring one more unit of labor
If a person has a deductible of $300 and must pay $500 out of a $1,300 health-care expense in a year, then their co-payment rate is
A. 50%. B. 5%. C. 10%. D. 20%.