The concentration ratio measures the
A. Number of plants owned by an oligopoly.
B. Proportion of total output produced by the largest firms in a specific market.
C. Percentage of total profits made by a firm in a specific market.
D. Relative size of a firm compared to other industries.
Answer: B
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Which of the following most clearly illustrates the concept of "derived demand"?
a. An increase in the price of steak causes the demand for poultry to increase. b. As the price of coffee increases, the quantity demanded for coffee declines. c. A boom in the housing market leads to an increase in the demand for lumber and electricians. d. An increase in beer advertising on television leads to an increase in per capita beer consumption.
Use the following graph to answer the question. 
Between prices of $5.70 and $6.30
A. D2 is more elastic than D1. B. D1 and D2 have identical elasticities. C. D1 is more elastic than D2. D. D2 is noncomparable to D1.