Macroeconomics_Unit2_IP

Macroeconomics_Unit2_IP - Question: You want to start a...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Question: You want to start a company, and are trying to decide between two different industries. You are doing your final research before you write your business plan. Industry A has 20 firms and a Concentration Ratio (CR) of 30% What is the name for this type of industry? Describe some of this industry's characteristics. If you were in this industry and there was an increased demand for the product that pushed up the price of goods, what long-run adjustments would you expect? What does your anticipated adjustment process imply about the CR for the industry? Industry B has 20 firms and a Concentration Ratio (CR) of 80%. What is the name for this type of industry? Describe some of this industry's characteristics. What are some reasons why this industry has a high CR while Industry A had a low CR? Is it possible for smaller firms to thrive and profit in Industry B? Why or why not? Teachers answer:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/17/2012 for the course ITCO 101 taught by Professor Gugenhiem during the Spring '12 term at AIU Online.

Page1 / 2

Macroeconomics_Unit2_IP - Question: You want to start a...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online