Using the information in the table, develop the four-firm concentration ratio. Would you classify this industry as an oligopoly? Explain your answer
What will be an ideal response?
The four-firm concentration ratio is 93 percent (800/860 multiplied by 100). This industry would be classified as an oligopoly if we use the rule of thumb that says that an oligopoly exists when the four-firm concentration ratio is at least 75%.
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What is the declining or dying industry argument for establishing barriers to imports? What are its merits and weaknesses? What measure(s) is/are more efficient than an import tariff if the intention is to help workers who would be displaced from a dying industry? Why? What measure(s) is/are more efficient than an import tariff if maintaining current production levels is the goal of government policy?
What will be an ideal response?
What is the domestic exchange equation of Italy?
