One major problem with concentration ratios is that they fail to take into account:
A. The localized market for products
B. Excess capacity in production
C. Price leadership
D. Mutual interdependence
A. The localized market for products
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________ real GDP increases the demand for money and ________ the nominal interest rate decreases the quantity of money demanded
A) Increasing; increasing B) Increasing; decreasing C) Decreasing; increasing D) Decreasing; decreasing
Economic profit is
A) revenue - variable costs + fixed costs. B) revenue + variable costs - fixed costs. C) revenue - variable costs - fixed costs. D) revenue/cost of capital.
The relationship between a change in the price of a complementary good and demand for another complementary good is
A) positive.
B) negative.
C) inconclusive.
D) zero.
A low concentration ratio would most likely indicate that the industry resembles the behavior of a(n)
A. cartel. B. monopolistic competitor. C. monopoly. D. oligopoly.