If there are eight firms in a market and each has an equal market share, the Herfindahl-Hirschman Index (HHI) is ________ and the market is considered to be ________.
A) 1,250; moderately competitive
B) 2,800; moderately competitive
C) 1,250; competitive
D) 2,800; competitive
C) 1,250; competitive
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Since the Fed's faces several uncertainties in regards to effects of its policies, the Fed usually proceeds:
A. only after fiscal policy polices have been enacted B. only after a recession is statistically proven to exist. C. forcefully to ensure a desired effect D. cautiously with only small changes in the interest rate
Cash may be preferred to food stamps because additional cash
A) rotates the budget constraint. B) shifts out the budget constraint at every point. C) provides a smaller opportunity set. D) allows the purchase of more food.
Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have on the firm's AFC (average fixed cost), AVC (average variable cost), ATC (average total cost) and MC (marginal cost) and therefore these cost curves? Why?
When economists say the supply of a product has increased, they mean the
a. supply curve has shifted to the right. b. price of the product has risen, and consequently, suppliers are producing more of it. c. supply curve has shifted to the left. d. amount of the product that consumers are willing to purchase at various prices has increased.