Suppose an industry is composed of 10 firms. Each firm's share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will

A) remain unchanged.
B) decrease as there are fewer firms in the industry.
C) increase.
D) depend on the market condition faced by the industry.

C

Economics

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Which of the following represents the general rule of hiring for a firm?

A) Total physical product equals marginal factor cost. B) Average revenue product equals the wage rate. C) Marginal cost equals marginal revenue. D) Marginal revenue product equals marginal factor cost.

Economics

A normal production possibilities frontier has a

A. positive slope and is steeper near the horizontal axis than near the vertical axis. B. negative slope and is steeper near the horizontal axis than near the vertical axis. C. positive slope and is steeper near the vertical axis than near the horizontal axis. D. negative slope and is steeper near the vertical axis than near the horizontal axis. E. zero slope, and it does not touch the horizontal axis.

Economics