An industry is deemed concentrated when ________

A) each firm in that industry has a small market share
B) all the firms in that industry charge a price lower than the average cost of production
C) most of the firms in that industry earn zero economic profits in the long run
D) a few firms account for a large fraction of total sales in that industry

D

Economics

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Golden Rule of Cost Minimization - to minimize cost, the firm should employ inputs in such a way that the _______________ per dollar spent is equal across all inputs.

Fill in the blank(s) with the appropriate word(s).

Economics

Refer to Figure 16-1. Suppose the economy is in short-run equilibrium below potential GDP and Congress and the president lower taxes to move the economy back to long-run equilibrium. Using the static AD-AS model in the figure above, this would be depicted as a movement from

A) A to B. B) C to B. C) A to E. D) B to A. E) B to C.

Economics