Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. We can conclude that:
A. price leadership exists in this industry.
B. the concentration ratio is more than 80 percent.
C. this industry is a differentiated oligopoly.
D. the firms in this industry face a kinked demand curve.
Answer: B
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Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Donnie's Donuts?
A) $150,000 B) $350,000 C) $600,000 D) $1.2 million
As the price of a good declines, a utility-maximizing consumer will respond by purchasing more of that good
a. True b. False Indicate whether the statement is true or false
As the U.S. dollar's foreign exchange value falls, we should expect to see
a. more Americans travelling abroad. b. American import levels rising. c. more foreigners visiting the United States. d. increased foreign investment by American firms.
Use the following general linear supply function:Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good. When PI = $40 and F = 50, the INVERSE supply function is
A. P = -36.667 + 0.1667Qs. B. P = 220 + 0.1667Qs. C. P = 220 + 6Qs. D. P = -220 + 6Qs.