As a measure of competition in an industry, concentration ratios have several flaws. One of these flaws is that concentration ratios
A) are calculated for the national market, even though competition in some industries is mainly local.
B) assume that all industries have low barriers to entry.
C) assume that a ratio less than 40 percent means an industry is perfectly competitive.
D) assume there are only four firms in an industry.
A
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A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded is called a condition of excess supply; because people want to sell ________ bonds than others want to buy, the price of bonds will ________
A) fewer; fall B) fewer; rise C) more; fall D) more; rise
The activists' paradise requires
A) that government expenditures follow a fairly steady growth path. B) the ability to forecast perfectly future changes in demand and effects of changes in policy. C) policy to have powerful direct effects but no side-effects. D) B and C are both correct.
A consumer is likely to _____________ his opportunity costs when ____________.
A. undervalue; they are not right in front of him B. undervalue; they are obvious C. overvalue; they are not obvious D. overvalue; they are right in front of him
There will be an increase in supply when
A. the market price rises from $3 to $4. B. the demand curve shifts. C. there is an improvement in technology. D. a consumer's income increases.