Industry A has a 60 percent concentration ratio, while industry B has a 40 percent concentration ratio. According to the inverted-U theory, all else equal, we can conclude that:
A. industry A will be more technologically progressive than B.
B. industry C, with a 10 percent concentration ratio, will be more technologically progressive
than either industry A or B.
C. industry D, with an 80 percent concentration ratio, will be more technologically progressive
than either industry A or B.
D. industry A should have a similar amount of R&D spending as industry B, all else equal.
Answer: D
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Cooling systems II Carl is the lead engineer on a smart HVAC cooling system that works with minimal energy and is voice activated. Given the revolutionary nature of the system, it took many failed tries to create a system that actually worked, a cost of
$30,000 . Now each unit sells for $6500 and it costs $5000 in raw materials and labor to produce. Carl receives an order for four new units for a customer, but when he takes the order to his manager, the manager is enraged and asks Carl why he wanted to produce something at a loss. What costs would the manager be looking at to come to this conclusion?
In order to practice price discrimination, the firm must
a. offer a good at different prices to different segments of the market b. first establish a monopoly position in the market c. make sure the practice is sanctioned by the government d. select a price so that different segments of the market will demand different quantities e. first collude with the other firms in the industry
For most goods and most people, marginal utility probably
a. continues to increase as larger quantities are purchased. b. plummets after the first few units but soon begins to rise. c. declines as consumption increases. d. is negative after the first unit of a good is purchased. e. is positive and rising for most goods.
Consumption of fixed capital (depreciation) can be determined by:
A. adding taxes on production and imports to NDP. B. subtracting NDP from GDP. C. subtracting net investment from GDP. D. adding net investment to gross investment.