How are monopolistic ally competitive industries identified with concentration ratios?
What will be an ideal response?
The percentage of output produced by firms in a manufacturing industry would be an empirical measure that could be used to judge whether an industry is monopolistic ally competitive. If the top four or eight firms account for less than a quarter of industry output, then it would be a low-concentrated industry. Even the top twenty firms might only account for about half of the total output in the industry. These data would indicate that there are many producers in the industry, each only producing a small percentage of the total output typical of monopolistic competition.
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Consider the perfectly competitive firm in the figure above. At the profit maximizing level of output, the firm will
A) make an economic profit equal to the area ABCD. B) incur an economic loss equal to the area ABCD. C) make zero economic profit. D) make an economic profit equal to the area AECD.
The marginal rate of substitution represents the maximum amount of one commodity a consumer is willing to give up in exchange for one more unit of another commodity
a. True b. False Indicate whether the statement is true or false
The "dual mandate" refers to the:
A. orders given to both the Federal Reserve and the Treasury department to ensure price stability. B. role that the Fed has by being a governmental agency but also must act in the best interest of all citizens of the United States. C. twin responsibilities of the Federal Reserve, to use monetary policy to ensure price stability and maintain full employment. D. responsibility given to the Federal Reserve and the Congress to conduct monetary and fiscal policy respectively, to ensure price stability.
Answer the following statements true (T) or false (F)
1. Do-it-yourself activities of people are a big part of the "underground economy". 2. When businesses have to install anti-pollution equipment to clean up their wastes, they are adding to GDP. 3. GDP tends to understate economic welfare because it does not take into account increases in leisure. 4. All activities included in GDP serve to enrich society. 5. Most activities in the so-called underground economy are illegal activities involving drugs or gambling, for example.