Assume that an industry is significantly affected by import competition from foreign suppliers. Taking this factor into account, it would mean that:
A. The Heyerdahl index would be significantly higher in that industry because there are more firms in the industry
B. The industry is less concentrated than suggested by domestic concentration ratios
C. There is a high degree of inter industry competition
D. There is a low degree of inter industry competition
B. The industry is less concentrated than suggested by domestic concentration ratios
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If real GDP grew 5 percent last year and the population grew 2 percent, then real GDP per person grew by ________ percent
A) 2 B) 5 C) 3 D) 7 E) 10
What is the principal-agent problem? What are three ways in which firms try to cope with it?
What will be an ideal response?
Betty spends all her income on wine and brie. Currently she gets 30 utils from the last bottle of wine and 15 utils from the last package of brie. The price of wine is $6 per bottle and the price of brie is $4 per package. a. Betty cannot increase her total utility by changing the combination of wine and brie she consumes. b. Betty can increase her total utility by buying more wine and less
brie. c. Betty can increase her total utility by buying more brie and less wine. d. Betty could increase her total utility by buying less of both brie and wine.
If an economy moves into a recession, causing that country to produce less than potential GDP, then:
a. automatic stabilizers will cause tax revenue to decrease and government spending to increase. b. automatic stabilizers will cause tax revenue to increase and government spending to decrease. c. tax revenue and government spending will be higher because of automatic stabilizers. d. tax revenue and government spending will be lower because of automatic stabilizers.