Suppose there are 100 firms in an industry. If the leading firm has a 50 percent market share, the second largest firm has a market share of half the leader's, the third has a market share of half the second's, and the fourth largest has a market share of half the third's, what is the four-firm concentration ratio?
a. 6.25 percent
b. 100.00 percent
c. 75.50 percent
d. 93.75 percent
e. 99.75 percent
D
You might also like to view...
If all variable taxes in the United States were removed and only fixed taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward and become steeper. b. The expenditure schedule will shift upward and become less steep. c. The expenditure schedule will shift downward and become less steep. d. The expenditure schedule will shift downward and become steeper.
Yvonne takes out a fixed-interest-rate loan and then inflation turns out to be higher than she had expected it to be. The real interest rate she pays is
a. higher than she had expected, and the real value of the loan is higher than she had expected. b. higher than she had expected, and the real value of the loan is lower than she had expected. c. lower than she had expected, and the real value of the loan is higher than she had expected. d. lower then she had expected, and the real value of the loan is lower than she had expected.
A market
A. is any arrangement that brings buyers and sellers together to exchange goods or services. B. is characterized by rigid prices C. is an institution used rarely by capitalist nations. D. raises the transaction costs of doing business.
Exhibit 3-6 Milk market Price per Quart Quantity Demanded (Quarts per week) Quantity Supplied (Quarts per week) 0.70 20 180 0.60 60 140 0.50 100 100 0.40 140 60 0.30 180 20 In Exhibit 3-6, which of the following is true about the milk market? ?
A. At price 0.60 there is an excess demand of milk. B. At price 0.40 there is an excess supply of milk. C. At price 0.70 there is an excess supply of milk. D. At price 0.50 there is an excess demand of milk.