If an industry lacks barriers to entry and each of the many firm faces a demand curve with a negative slope, the industry is
A) perfectly competitive.
B) monopolistically competitive.
C) an oligopoly.
D) a monopoly.
B
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The total producer surplus in the entire market is given by the:
A) product of the individual seller's surplus. B) sum of all the individual sellers' producer surplus. C) area between the market supply curve and the market demand curve. D) area between the market demand curve and the price line.
Assume a portfolio in which there is equal investment in two assets that are perfectly positively correlated, with equally expected returns of 10 percent and 6 percent for asset A and 8 percent and 4 percent for asset B
The expected yield on this portfolio is A) 8 percent. B) 7 percent. C) 6 percent. D) 5 percent.
If there are four firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________.
A) 1,600 B) 100 C) 5,500 D) 2,500
As a firm increases its output in the short run,
a. it also varies its technology b. it increases all of its inputs c. it increases its plant size d. it increases only one of its inputs e. at least one of its inputs is fixed