What is meant by the concentration of an industry? How is concentration measured? What are likely causes of high concentration?
What will be an ideal response?
Industry concentration means that a relatively large share of the industry's output is produced by the largest firms in the industry. It is often measured with concentration ratios. The four-firm concentration ratio is the percentage of total industry sales generated by the four largest firms in the industry. High concentration is likely to be associated with economies of scale, barriers to entry, and a history of mergers.
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When the price of almonds falls
A) the quantity of almonds demanded increases, ceteris paribus. B) the demand for almonds decreases, ceteris paribus. C) the demand for almonds increases, ceteris paribus. D) the quantity of almonds demanded decreases, ceteris paribus.
When underproduction occurs,
A) producers gain more surplus at the expense of consumers. B) marginal cost is greater than marginal benefit. C) consumer surplus increases to a harmful amount. D) there is a deadweight loss that is borne by the entire society. E) the deadweight loss harms only consumers.
Describe the three main options available to a corporation when it needs to raise money so that it can invest in a new product or a new manufacturing technique.
What will be an ideal response?
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the demand of reserves, ________ the federal funds rate, everything else
held constant. A) decreases; lowering B) increases; lowering C) increases; raising D) decreases; raising