Suppose an industry is made up of 25 firms, all with equal market share. The four-firm concentration ratio of this industry is
A) 16%.
B) 20%.
C) 25%.
D) It cannot be determined from the information given.
A
You might also like to view...
Barriers to entry are forces that:
A. promote a more efficient allocation of resources across the economy. B. limit the government from intervening in markets. C. limit consumers from purchasing new products. D. limit new firms from joining an industry.
Inflation is best defined as
A) a sustained increase in the price of ALL goods and services in an economy. B) a relative price increase. C) a sustained increase in the average of all prices of goods and services in an economy. D) a sustained increase in the price of a single good or service.
Which of the following is true?
a. When the government undertakes an activity, we can be assured that all voters will gain. b. If a government activity is favored by most citizens, it must be productive. c. If most voters oppose a government activity, it must be counterproductive. d. When voters pay in proportion to benefits received, all voters will gain if the government activity is productive.
Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. earn an economic profit. b. stay in operation in the short-run. c. shut down. d. earn an economic profit in the long run.