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# PracticeQuestions - MANEC 387 Practice Final Exam 1 An...

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MANEC 387 Practice Final Exam 1. An industry is comprised of 20 firms, each with an equal market share. What is the 4- firm concentration ratio of this industry? a) .2. b) .4. c) .6. d) .8. 2. Oligopoly differs from monopoly as follows: 3. Suppose that there are two industries, A & B. There are five firms in industry A with sales at \$5 million, \$2 million, \$1 million, \$1 million, and \$1 million, respectively. There are 4-firms in industry B with equal sales of \$2.5 million for each firm. The HHI for industry A is 4. An electronic company takes over one of its original suppliers in a merger. This is an example of: 5. You are the manager of a firm that sells its product in a competitive market at a price of \$50. Your firm's cost function is C = 40 + 5Q 2 . The profit-maximizing output for your firm is a) 4/5. b) 10. c) 5. d) 45. 1

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6. You are the manager of a firm that sells its product in a competitive market at a price of \$40. Your firm's cost function is C = 60 + 4Q 2 . Your firm's maximum profits are 7. You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. Your firm's maximum profits are 8. Which of the following market structures would you expect to yield the greatest in- market product variety? 9. What contributes to the existence of multiproduct firms? a) economies of scale. b) economies of scope. c) cost complementarity. d) both b and c. 10. A firm has a total cost function of C(Q) = 50 + 10Q 1/2 . The firm experiences 11. Which of the following probably would NOT be a barrier to entry? 12. Both firms in a Cournot duopoly would enjoy higher profits if a. and c. 2

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