Suppose the market for good X has a four-firm concentration ratio of 0.80. Having worked for the four largest firms in the industry, you know the sales for these four firms are given by $100,000, $125,000, $150,000, and $175,000. Based on this information, we know that sales for the remaining firms in the industry are:
A. $250,500.
B. $687,500.
C. $137,500.
D. $550,000.
Answer: C
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Explain how a decrease in housing prices may reduce the wealth of some while increasing the wealth of others. What effect would this have on aggregate consumption?
What will be an ideal response?
If the federal government runs a budget _______, then the national debt becomes __________
a. surplus, larger b. deficit, smaller c. surplus, smaller d. none of the above
Whenever there is an increase in autonomous consumption spending, there will be
a. an upward shift of the aggregate expenditure line causing equilibrium GDP to rise b. an upward shift of aggregate expenditure line, but no change in equilibrium GDP c. no change in the aggregate expenditure line, but equilibrium GDP will rise d. an upward shift of the aggregate expenditure line, causing equilibrium GDP to fall e. no change in the aggregate expenditure line or equilibrium GDP
Which of the following types of firms are least likely to have their MC, AVC, and ATC curves affected by fluctuations in gasoline prices?
A. Firms like UPS that use a fleet of gasoline-powered vehicles. B. Taxi cab and limousine companies. C. Companies that operate bus tours to popular vacation destinations. D. Firms like iTunes that distribute their products over the internet.