If the four-firm concentration ratio for an industry is 84 percent, then
A. the four largest firms in the industry account for 16 percent of the total sales.
B. the four largest firms in the industry account for 84 percent of the total sales.
C. the remaining firms in the industry accounts for 84 percent of the total sales.
D. each of the firms account for 21 percent of total sales.
Answer: B
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The net effect of a stronger dollar on real GDP is
A) an increase in the price level. B) dependent on whether the increase in aggregate supply is more or less than the decrease in aggregate demand. C) a decrease in real GDP. D) an increase in real GDP.
The demand curve facing a single-price monopoly
A) lies below the marginal revenue curve. B) lies above the marginal revenue curve. C) is the same as only the marginal revenue curve. D) is the same as only the marginal cost curve. E) is the same as both the marginal revenue curve and the marginal cost curve.
The short-run market supply curve is
a. the horizontal summation of each firm's short-run supply curve. b. the vertical summation of each firm's short-run supply curve. c. the horizontal summation of each firm's short-run average cost curve. d. the vertical summation of each firm's short-run average cost curve.
Radon Research Corporation (RRC) is one of 24 firms in Albuquerque testing homes for dangerous levels of radon gas. There is a standard test that all testing companies use. The manager of RRC wants to know the number of homes to test in 2015 in order to maximize the firm's profit. The manager forecasted a price of $160 for radon tests in 2015. The firm's marginal cost was estimated asSMC = 200 ? 15Q + 0.8Q2where Q is the number of tests performed each week. RRC's fixed cost will be $250 per week. The weekly profit (loss) at RRC in 2015 will be
A. $86 B. -$61 C. -$121 D. $320 E. $121