The fraction of an industry's sales that are accounted for by the largest firms is called
A) the four-firm oligopoly ratio.
B) the four-firm competition ratio.
C) the four-firm industry ratio.
D) the four-firm concentration ratio.
D
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At the profit-maximizing level of output, what is relationship between the total revenue (TR) and total cost (TC) curves?
A) They must intersect, with TC cutting TR from below. B) They must intersect, with TC cutting TR from above. C) They must be tangent to each other. D) They cannot be tangent to each other. E) They must have the same slope.
e-Bay
Find the price of a new Fender Squier Stratocaster guitar on eBay (you may use either the “Buy it Now” price or the final sale price from a recent auction). Compare this to the price of a new Fender Squier Stratocaster at Sam Ash and Musician’s Friend. Questions:
- How do the prices compare? Are the prices fairly close?
- Does the existence of the internet reduce price differences among sellers for products such as this?
- Revisit eBay and search for a Fender Stratocaster produced between 1960 and 1979. State the price (the final sale price or the “Buy it Now” price) and the vintage of the item you found. Has the availability of sites such as eBay made it easier to find such items? How does this affect the gains to trade for buyers and sellers?
In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3 . The
government is able to raise $750 per month in revenue from the tax. The deadweight loss from the tax is a. $250. b. $125. c. $75. d. $50.
Some argue that U.S. workers cannot compete with cheap labor from many developing nations. This
A) is true and is a justification for tariffs to protect domestic jobs. B) is true and it is has been found that tariffs in these cases can save thousands of jobs and benefit the economy. C) is true but the benefits of free trade are still such that tariffs should not be placed on these industries. D) is not true, as evidenced by the fact that the United States carries on a lot of trade with countries that have lower wages.