You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that:
A. Each of the top four firms has 20 percent of industry sales
B. The four largest firms account for a combined 80 percent of the industry sales
C. The four largest firms account for 20 percent of industry sales
D. Each of the four largest firms accounts for 5 percent of industry sales
C. The four largest firms account for 20 percent of industry sales
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When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent. This indicates that the demand for tortilla chips is
A) inelastic. B) perfectly inelastic. C) elastic. D) unit elastic.
Suppose on any given day there is an excess supply of reserves in the federal funds market
If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale B) defensive; purchase C) dynamic; sale D) dynamic; purchase