Suppose the four-firm concentration ratio for an industry is 10 percent. This value indicates ________. If the four-firm concentration ratio for another industry is 95 percent, this value indicates ________
A) the industry is competitive; the industry has very little competition
B) the industry has very little competition; the industry is very competitive
C) the industry has firms worldwide; the industry is concentrated in one country
D) the HHI will be high; the HHI will be low
A
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Which of the following statements is false?
A) A straight line has a slope of zero. B) A curved line has slope values that change at every point. C) A direct relationship has a positive slope value. D) An inverse relationship has a negative slope value.
Refer to the above graph. Consider a monopolist in short-run equilibrium. This monopolist:
A. has a loss per unit equal to DE. B. will cease production since its economic profits are negative. C. earns economic profit equal to area ABED. D. has total fixed costs equal to area BEFC.