The higher an industry's concentration ratio is, the more competitive the industry is.
Answer the following statement true (T) or false (F)
False
The concentration ratio represents the combined market share of the top firms in an industry. The larger the market share, the less competitive the industry.
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If events in a single country cause its economic activity to move up or down through a business cycle, what difference(s) might it make that the economy is closely integrated with other economies in the world?
What will be an ideal response?
If Happy Campers is in tacit collusion with four smaller camping firms and Happy Campers consistently makes price changes that the other four firms then also make, this is an example of ________ by Happy Campers.
A) a meet-or-release clause B) a precommitment C) a meet-the-competition clause D) price leadership
If the actual price were below the equilibrium price in the market for bread, a:
A) surplus would develop that cannot be eliminated over time. B) shortage would develop, which market forces would eliminate over time. C) surplus would develop, which market forces would eliminate over time. D) shortage would develop, which market forces would tend to exacerbate.
For a commitment strategy to work:
A. the punishment must be so bad that it outweighs the incentive to defect in the game. B. the punishment must occur immediately after the game is played. C. both players must agree to a punishment. D. no player may have a dominant strategy.