The demand for a resource is generally more
a. elastic in the short run because it takes time to alter the ratio of resources used in many production processes.
b. inelastic in the short run because it takes time to alter the ratio of resources used in many production processes.
c. elastic in the short run because an increase in the price of the resource may not be expected to last.
d. inelastic in the short run because once resource suppliers find out they can charge a higher price, they will do so in the long run.
B
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Consider two industries, industry Q and industry Z. In industry Q there are 10 companies, each with a market share of 10% of total sales. In industry Z, there are eight companies
One company has a 65% market share and each of the other seven firms has a market share of 5%. a. Calculate the four-firm concentration ratio for each industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for each industry. c. What do the values of the two concentration measures imply about the degree of market power in the two industries?
U.S. Steel considers the iron ore market thin because of:
a. the availability of wide range of ore producers. b. the scarcity of alternative ore suppliers. c. the volatility of ore prices. d. the low deliverability risks.
The trade deficit is the mirror image of required capital inflows
a. True b. False Indicate whether the statement is true or false
Average cost pricing is permitted
A. when a service is produced by a natural monopoly. B. when few firms have the incentive to provide a service. C. in price-taking markets. D. when firms exhibit diseconomies of scale.