If entry into an industry was very easy, the four firm concentration ratio would not be a very useful index of the competitiveness in that industry
a. True
b. False
Indicate whether the statement is true or false
True
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What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if the demand for peanuts (which can be grown on cotton land) increases?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
In a graph with output on the horizontal axis and total revenue on the vertical axis, what is the shape of the total revenue curve for a perfectly competitive seller?
A) a ray from the origin B) inverted U-shaped C) U-shaped D) a horizontal line
If you are indifferent between investing $1000 for one year in a U.S. Treasury security that has an interest rate of 5% or in a Canadian government security that has an interest rate of 8%, you must be expecting
A) the inflation rate in the United States will be higher than the inflation rate in Canada during the year. B) the U.S. dollar to depreciate against the Canadian dollar by 3% during the year. C) the U.S. dollar to appreciate against the Canadian dollar by 3% during the year. D) productivity growth in Canada to be greater than productivity growth in the United States during the year.
If you can't prevent people from consuming something, then:
A. they have little reason to pay for using it. B. the good is not excludable. C. individuals will likely use it for free. D. All of these statements are true.