An industry in which there are five firms each accounting for 20 percent of the market has an HHI of 100.
Answer the following statement true (T) or false (F)
False
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The figure above shows the costs for a grower in the perfectly competitive turnip market. If the price is $1,200 for a ton of turnips, the firm is
A) making an economic profit. B) making zero economic profit. C) incurring an economic loss. D) More information is needed to determine if the firm is making a positive economic profit, zero economic profit, or incurring an economic loss.
Many firms use odd pricing—charging prices such as $.99 instead of $1.00 and $9.99 instead of $10.00
One reason for this pricing strategy is that consumers will somehow believe that the difference in price appears to be greater than it actually is. Researchers conducted consumer surveys to determine whether this is actually the case. What was the result of these surveys? A) The survey results were inconclusive because most consumers gave unreliable responses to the survey questions. B) Although the results were not conclusive, there is some evidence that odd pricing makes economic sense. C) The surveys found indifference regarding this strategy among most consumers, but hostility among other consumers. The latter group resented what they viewed as an attempt to fool them into buying products with odd prices. Researchers concluded that odd pricing is counterproductive. D) The surveys found that small differences in price cause small differences in quantity demanded. There is no evidence that odd pricing makes economic sense.
If the graph shown is displaying a competitive labor market:
A. D would represent the workers' demand for jobs at each wage. B. Q* would represent the equilibrium wage. C. P* would represent how many people are employed in the market. D. Q* would represent the equilibrium number of workers in the market.
Refer to the information provided in Table 33.4 below to answer the question(s) that follow. Table 33.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 33.4. Chile has
A. an absolute advantage in beer production. B. an absolute advantage in wine production. C. a comparative advantage in wine production. D. a comparative advantage in beer production.