In a 20-firm industry, two of the smallest firms merge. Yet the 4-firm concentration ratio and the 8-firm concentration ratio did not change. All things considered, we can say that the industry has
A. moved farther away from competition because the number of firms decreased.
B. moved closer to pure competition because the number of firms decreased.
C. experienced no change in competition even though the number of firms decreased.
D. to be identified first; otherwise there is no way to tell.
Answer: A
Economics
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In the two-country model of the Monetary Approach, the spot exchange rate is determined by
A) the relative quantities of money supplied and demanded. B) the real money stock in country A vs. country B. C) the nominal incomes in the two countries. D) the ratio of prices in the economies.
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In the case of a perfectly competitive firm, the optimal markup over marginal cost is 0 percent
Indicate whether the statement is true or false
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