The higher the concentration ratio is in an industry, the more likely it is that
A) the industry is perfectly competitive.
B) the market share of the smallest four firms is larger.
C) the market share of the largest four firms is smaller.
D) the industry has an oligopoly.
Answer: D
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Large firms sometimes have manufacturing and development that take place in multiple states. Should they be subject to taxation in every state in which they do business?
What will be an ideal response?
The key characteristic of an oligopolistic market is:
A) production of a homogeneous product. B) mutual interdependence among firms in the market. C) the absence of market power by any one firm. D) ease of entry into, and exit out of, the market.
A profit-maximizing firm in a perfectly competitive market will always produce a quantity of output that: a. minimizes the per-unit cost of production
b. is expected to maximize total revenue. c. maximizes the amount by which total revenue exceeds total cost. d. brings average total cost and price into equality.
The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively
a. insensitive to interest rates and to GDP. b. insensitive to interest rates but sensitive to GDP. c. sensitive to interest rates and to GDP. d. sensitive to interest rates and insensitive to GDP.