If the four-firm concentration ratio for an industry equals 100 percent, then definitely
A) the Herfindahl-Hirschman Index (HHI) equals 10,000.
B) the industry is a monopoly.
C) a small number of firms are in the industry.
D) there are no barriers to entry into the industry.
C
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Legal restrictions on competition, such as the grant of patent privileges to inventors,
A) destroy property rights. B) expand property rights. C) both destroy and expand property rights. D) neither destroy nor expand property rights because patents are granted by the U.S. Constitution.
How do you explain why income inequality in the United States has been increasing? a. New technologies raise the MRP of educated workers, while having no (or a much smaller effect) on the MRP of uneducated workers
b. The MRP of rich workers increases more slowly than the MRP of poor workers. c. The labor supply of poor workers shifts to the left, while the labor supply of rich workers shifts to the right. d. Many talented U.S. workers, earning high incomes, are lured away by firms located in other countries that are paying considerably higher wage rates. e. Minimum wage laws have raised the minimum wage rates.