In a 20-firm industry, two of the smallest firms merge. Yet the 4-firm concentration ratio and the 8-firm concentration ratio did not change. All things considered, we can say that the industry has
A. moved farther away from competition because the number of firms decreased.
B. moved closer to pure competition because the number of firms decreased.
C. experienced no change in competition even though the number of firms decreased.
D. to be identified first; otherwise there is no way to tell.
Answer: A
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What statement best describes the colonial economic experience?
a. The agricultural sector was initially a small portion of the economy, but quickly grew to be the largest sector. b. By the time of the American Revolution, the U.S. colonial economy was larger than about 70 percent of other nation's economies. c. The U.S. colonial economy was particularly hurt during the Seven Year's War. d. Economic growth was irregular and averaged about 0.45% per year.
Accountants keep track of the money that flows into and out of firms
a. True b. False Indicate whether the statement is true or false
In the market for loanable funds an increase in the government budget deficit will
A. decrease the market rate of interest. B. increase the market rate of interest. C. increase the supply of loanable funds. D. have no effect over the market rate of interest.
In the case of a vertical contract curve, union negotiations will result in the firm hiring
A. fewer workers but at a higher wage than it would in the absence of the union. B. fewer workers but at a lower wage than it would in the absence of the union. C. the same number of workers but at a lower wage than it would in the absence of the union. D. the same number of workers but at a higher wage than it would in the absence of the union. E. more workers and at a higher wage than it would in the absence of the union.