Suppose an industry consists of 20 firms. Each firm's share of total sales in the industry is 5 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will
A) remain unchanged.
B) decrease as there are fewer firms in the industry.
C) increase.
D) depend on the market condition faced by the industry.
Answer: C
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If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
A. decreasing cost industry. B. increasing cost industry. C. constant cost industry. D. industry characterized by economies of scale.
A recessionary gap implies that
A. Aggregate demand exceeds aggregate supply at the full-employment price level. B. Inventories are being depleted faster than producers desire. C. The unemployment rate is falling. D. Aggregate demand is less than aggregate supply at the full-employment price level.
YearAntonio's Hourly wageConsumer Price Index2006$8.40201.62010$9.05218.1 Refer to Table 8.2. From 2006 to 2010, Antonio received a total of $0.65 in pay raises, and the CPI also increased as shown in the table. What was Antonio's real wage in 2006, if 2010 is used as the base year?
A. $9.09 B. $9.05 C. $8.37 D. $8.40
The quantity supplied of a particular good is the amount of the good that
A. firms will actually end up buying at a particular price during a given time period. B. households are willing to consume at each particular price. C. firms are willing to sell at each price during a particular time period. D. households want firms to sell at each price during a particular time period.