The higher the concentration ratio is in an industry, the more likely it is that
A. the market share of the smallest four firms is larger.
B. the industry is perfectly competitive.
C. the industry has an oligopoly.
D. the market share of the largest four firms is smaller.
Answer: C
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A significant amount of positive consumer surplus is the reason why sometimes a shopper regrets having bought a particular item
Indicate whether the statement is true or false.
The benefits principle is often used to justify
a. the progressive income tax. b. a flat income tax. c. a regressive excise tax. d. earmarking the proceeds from taxes for specific public services.
If two firms comprise the entire soft drink market, the market would be a(n)
a. Nash equilibrium. b. monopolistically competitive market. c. oligopolistically competitive market. d. duopoly.
When we compare PAE and actual output (Y) if PAE is greater than Y we expect that:
A. eventually production will decrease. B. eventually production will increase. C. the government will intervene by cutting down on taxes. D. there will be no change in aggregate production.