Which would concern you most, a 5 percent increase in concentration in a market where the four-firm concentration ratio is 3 percent, 42 percent or 85 percent? Explain your reasoning
Generally, an increase in concentration leads to a bigger increase in price for firms in the mid-range of
concentration ratios. This is why an increase in concentration in a market where the four-firm concentration
ratio is 42 percent is the most worrisome.
Economics
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What happens to a monopolistically competitive firm that begins to charge an excessive price for its product?
a. The firm will go out of business. b. Consumers will substitute a rival's product. c. Consumers will boycott the product. d. The government will regulate the price.
Economics
Which of the following increases aggregate demand?
A) a decrease in taxes B) a decrease in foreign income C) a decrease in government expenditure D) a rise in the interest rate
Economics