Concentration may influence leading firm profit regardless of whether entry is easy
Indicate whether the statement is true or false
F High barriers to entry make it more likely that profits of larger firms in the industry can be higher when the industry is more concentrated.
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Consider an economy where the growth rate of real GDP is 6% and the annual rate of inflation is 2%. If the quantity theory of money holds, the growth rate of money supply in the economy will be:
A) 6%. B) 2%. C) 8%. D) 4%.
For any new deposits into the banking system, the deposit expansion multiplier provides
A) no useful information regarding the potential expansion of the nation's money supply. B) an exact prediction of the expansion of the nation's money supply. C) a theoretical limit on the potential expansion of the nation's money supply. D) an argument that deposits don't effect the nation's money supply at all.
Explain how each of the following events would affect the short-run aggregate supply curve
a. A decrease in the price level b. A decrease in what the price level is expected to be in the future c. A price level that is currently lower than expected d. An unexpected decrease in the price of an important raw material e. A decrease in the labor force
The reason that Blu-ray movies cost more money immediately after they are released than they do six months later is due to price discrimination.
Answer the following statement true (T) or false (F)