Concentration ratios:
A. may overstate the degree of competition because they ignore imported products.
B. may overstate the degree of competition because interindustry competition is ignored.
C. may understate the degree of competition because they ignore imported products.
D. provide detailed insights as to the price and output behavior of firms that comprise the
various industries.
Answer: C
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For any transaction, the sum of consumer surplus and producer surplus is cooperative surplus
Indicate whether the statement is true or false
If an industry's long-run supply curve slopes downward, then the industry is
A) a fixed-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a decreasing-cost industry.
In the United States, the top 20 percent of income earners earn:
A. over 60 percent of total income. B. over 70 percent of total income. C. just under 50 percent of total income. D. just under 40 percent of total income.
Refer to Figure 17.3. Assume X units of plants and equipment wear out each year. What will happen to the PPC in the future if the economy currently produces at point Z?
A. It will shift outward. B. It will stay the same. C. It will shift inward. D. This cannot be determined with the information given.