If one firm has 80 percent of industry sales, while the remaining four firms share the other 20 percent of sales, then we can conclude that this is a(n)
a. monopoly
b. price-taker market
c. low concentration ratio industry
d. balanced oligopoly
e. unbalanced oligopoly
E
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If a firm with a 20 percent market share merges with a firm with 5 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares
a. It rises by 100. b. It rises by 200. c. It falls by 100. d. It falls by 200. e. It rises by 25.
The increase in the trade deficit in the 1980's reflected a decrease in national saving that is associated with an increase in the government budget deficit
a. True b. False Indicate whether the statement is true or false
Identify and describe each step of the five-step process outlined in the textbook for building and testing theories
A firm is considering an investment that will cost $2 million today and $2 million a year from now. It will generate revenues of $1 million a year for five years, beginning two years from now. If the interest rate is 10 percent, the firm should
A. not make the investment because the present value of the net revenues is less than $4 million. B. not make the investment because the present value of the net revenues is less than the present value of the investment spending. C. make the investment because the project will generate a net profit of $1 million. D. make the investment because the present value of the net revenues is greater than the present value of the investment.