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Unformatted text preview: The top four firms in Industry B have market shares of 15, 12, 8 and 4 percent, respectively. Calculate the four-firm concentration ratios for the two industries. Which industry is more concentrated? Industry A 30 x 25 x 10 x 5 = 37,500 Industry B 15 x 12 x 8 x 4 = 5,760 The following graph shows a firm in a monopolistically competitive industry. A. Show the firms short-run profit-maximizing quantity and price. Is the firm making a profit? B. Carefully explain what will happen in the industry over time, and draw a graph of a monopolistically competitive firm in long-run equilibrium....
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- Spring '10