Which of the following events would increase the four-firm concentration ratio in a milk industry with six firms?
A. The two largest milk producers merge.
B. The largest milk producer buys an ice cream-making plant.
C. The largest milk producer lures customers away from the second largest producer.
D. The four largest milk producers collusively fix prices.
Answer: A
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Suppose the Federal Reserve releases a policy statement today which leads people to believe that the Fed will be enacting expansionary monetary policy in the near future
Everything else held constant, the release of this statement would immediately cause the demand for U.S. assets to ________ and the U.S. dollar to ________. A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
Refer to Figure 10.7. A movement from point A to point B could be caused by
A) a negative demand shock. B) a decrease in the term premium investors expect in the future. C) an increase in the default-risk premium. D) an increase in the expected rate of inflation.