What are “four-firm” concentration ratios? How do economists use them to define monopolistically competitive industries and oligopolistic industries?
What will be an ideal response?
The most typical type of concentration ratio is the “four-firm” ratio that indicates the percentage of output (or sales) produced by the four largest firms in an industry. If the four top firms produce less than 40% of the output in an industry, the industry is considered to be monopolistic ally competitive. If the four top firms produce over 40% of the output in an industry, the industry is considered to be monopolistic.
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From the Monetarist perspective, the aggregate supply curve is
A) vertical. B) horizontal. C) sensitive to changes in the money supply. D) sensitive to changes in consumption.
The moral-hazard problem and the desire of firms to lessen that problem serve as a plausible explanation for a firm paying above-equilibrium wages to its workers
a. True b. False Indicate whether the statement is true or false
Which of the following is not a component in the two sector circular flow model?
A. Business Sector B. Government Sector C. Real Flows D. The Resource or Factor Market
In Figure 24.2, total profit at the profit-maximizing rate of output is
A. ABDLK. B. CDLK. C. GHLK. D. CDHG.