econ unit 3 IP - Please submit your assignment. Instructor...

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Assignment Type:  Individual Project    Deliverable Length:  2-3 Pages  Points Possible:  85    Due Date:  11/29/2009 11:59:59 PM  CT  Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20  firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up  the price for the good. What long-run adjustments would you expect following this change in demand? What does your  adjustment process imply about the CR for the industry? Now consider that the industry has 20 firms but the CR for the  industry is 80% instead of 30%. How would you describe this industry? What are some reasons why this industry has a high  CR while the other industry had a low CR? Is it possible for smaller firms to thrive and profit in such an industry? How? 
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Unformatted text preview: Please submit your assignment. Instructor Comments: Unit 3 IP1: Assignment Template 1. (25 points) Number of firms Four-Firm Concentration Ratio Describe type of structure 20 30% 20 80% 2. What could be some reasons, relating to market structure why the market for one industry has a low CR and for another another industry has a high CR? (20 points) 3. If price increases due to increased demand, what long-run adjustments in price/output/profit would occur in the first industry (the one with 30% CR), and why? (10 points) 4. If price increases due to increased demand, what long-run adjustments in price/output/profit would occur in the second industry (the one with 80% CR), and why? (10 points) 5. Is it possible for smaller firms to thrive and profit in a high CR industry? Please explain your answer. (15 points) 6. Citation and cover page in APA format ( 5 points)...
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econ unit 3 IP - Please submit your assignment. Instructor...

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