An industry's total revenue is $100 million. The above table shows the total revenue of the four largest firms in an industry
a. Calculate this industry's four-firm concentration ratio.
b. Is this industry competitive?
c. What market type does it most likely represent?
a. The four-firm concentration rate is 30 percent.
b. Because the four-firm concentration ratio is relatively low, the industry is competitive.
c. The industry is most likely monopolistic competition.
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The invisible hand suggests that:
A) individuals working for self-interest will eventually maximize the well-being of society. B) equilibrium in a competitive market is determined independent of demand and supply. C) government intervention is necessary to rectify market imperfections. D) the price mechanism allocates resources only to the people with high income in the country.
Which of the following costs are part of a firm's opportunity costs? I. costs for resources bought in markets II. costs for resources the firm owns III. costs for resources supplied by the owner
A) I and II B) I and III C) I only D) I, II, and III
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two customers, the expected value of this auction is
a. $70 b. $78 c. $85 d. $100
If policymakers do nothing in response to an inflationary gap, what will happen?
A. A rapid movement toward lower unemployment and higher inflation B. A rapid movement toward lower unemployment and lower inflation C. A slow movement toward higher unemployment and higher inflation D. A slow movement toward lower unemployment and lower inflation