As a measure of competition in an industry, concentration ratios have several flaws. One of these flaws is that concentration ratios
A) are calculated for the national market, even though competition in some industries is mainly local.
B) assume that all industries have low barriers to entry.
C) assume that a ratio less than 40 percent means an industry is perfectly competitive.
D) assume there are only four firms in an industry.
A
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A decrease in the capital stock would be expected to
a. decrease the labor force. b. increase the level of output. c. decrease real GDP per capita. d. increase real GDP per capita.
Compound interest:
A. describes how quickly an interest-bearing asset increases in value. B. measures the rate of return of a portfolio of stocks and bonds. C. measures the after-tax, inflation-adjusted rate of interest. D. refers to the multiple rates of interest of various types of bonds in a portfolio.