Consider the following five investments. If the nominal interest rate is five percent, which projects should be undertaken? (Note: The returns are for one period later.)
Investment Cost Returns
A $100 $106
B 300 313
C 200 218
D 50 55
E 400 418
At an interest rate of five percent, projects A, C and D have returns that exceed the five percent threshold.
Economics
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Refer to the data. If Firm B merged with Firm C, the industry's four-firm concentration ratio would ____ and its Herfindahl index would ____.
A. rise; rise
B. fall; rise
C. remain the same; rise
D. remain the same; fall
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Natural monopolies occur when a single or a few firms can take advantage of economies of scale and supply the entire industry output.
A. True B. False C. Uncertain
Economics