Suppose an industry has total sales of $25 million per year. The two largest firms have sales of $6 million each, the third largest firm has sales of $2 million, and the fourth largest firm has sales of $1 million
The four-firm concentration ratio for this industry is A) 36 percent.
B) 60 percent.
C) 50 percent.
D) 25 percent.
B
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The largest item on the liability side of the Federal Reserve's balance sheet is
A) commercial bank deposits. B) U.S. government securities. C) cash items in the process of collection. D) Federal Reserve notes outstanding.
The key disadvantage of the kinked-demand model is that it:
A) explains why firms may collude, but it does not explain how they interact. B) does not explain why prices may be rigid in an oligopoly. C) requires the assumptions of perfect competition. D) only holds under price leadership.
In the long run, the price level in an economy is determined solely by: a. the long-run aggregate supply curve
b. the aggregate demand curve. c. the amount of cyclical unemployment in the economy. d. the short-run aggregate supply curve. e. the potential output level.
If employers have imperfect information about job applicants, it may be rational for them to use:
a. employer prejudice. b. worker prejudice. c. consumer prejudice. d. statistical discrimination. e. occupational segregation.