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Unformatted text preview: or the steel industry? a)
e) 35 percent
40 percent Solution: b) 65 percent
Total industry sales =200 + 180 + 150 + 120 + 350 =1000
Sales of the four largest firms = 200 + 180 + 150 + 120 = 650
The four-firm concentration ratio= (sales of the four largest firms / total sales)*100% =
(650 / 1000)*100%=65% Use the following table to answer question 28:
C Quantity of Labour
20 Quantity of Capital
10 Q28. Which of the threes methods of production is (are) technologically efficient? a)
e) Method A
Methods B and C
Methods A and B
Methods A, B, and C Solution: e) Methods A, B, C
Method A uses more capital than methods B and C, but it uses the least amount of labour.
Method C uses more labour than methods A and B, but it uses the least amount of capital. Page 17 of 33 ©Prep101 www.prep101.com/freestuff Method B uses more (less) labour than method A (method C), but it uses less (more)
capital than method A (method C).
Technologically efficient method produces a given out...
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- Fall '07