An increase in a family's income will cause its budget line to
a. become steeper.
b. become flatter (less steep).
c. move closer to the origin.
d. move away from the origin.
e. become more convex toward the origin.
d
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If there are four firms in an industry with market shares of 50 percent, 40 percent, 5 percent, and 5 percent, the Herfindahl-Hirschman Index is
A) 100. B) 4150. C) 25. D) 3450. E) undefined because there are not 50 firms in the industry.
Which of the following outcomes is NOT a result of a tax imposed on sellers of gasoline?
A) Supply decreases, a deadweight loss is created, and the price rises. B) The market becomes less efficient and the government collects the tax revenue. C) Demand does not change, the price rises, and consumer surplus decreases. D) Demand decreases, the market becomes more efficient, and the price rises.
Multinational companies can easily apply identical production methods in different countries and obtain the same results
Indicate whether the statement is true or false
An oligopoly with two firms is known as:
A. a two-opoly. B. a duopoly. C. duopolistic competition. D. a double market.