7 a four firm concentration ratio measures a the

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7) A four-firm concentration ratio measuresA) the price elasticity of demand among the four largest firms in an industry.B) the number of firms in an industry.7)
C) the extent to which industry sales are concentrated among the four largest firms in theindustry.D) the price elasticity of demand in an industry.Answer: CDiff: 1Page Ref: 460/460Topic: Concentration RatioLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking2
8) As a measure of competition in an industry, concentration ratios have several flaws. One of theseflaws is that concentration ratiosC) assume that all industries have low barriers to entry.8)
D) are calculated for the national market, even though competition in some industries is mainlylocal.Answer: DDiff: 2Page Ref: 460/460Topic: Concentration RatioLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking9) Which of the following isnota characteristic of oligopoly?9)Diff: 1Page Ref: 460/460
Topic: Characteristics of OligopolyLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking10) Which of the following isnota barrier to entry?10)Diff: 1Page Ref: 461/461
Topic: Barriers to EntryLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking11) Economies of scale will create a barrier to entry in an oligopoly industry whenA) the industryʹs four-firm concentration ratio is less than 40 percent.B) a firmʹs minimum efficient scale occurs where long-run average total costs are constant.C) the typical firmʹs long-run average total cost curve reaches a minimum at a level of output11)
that is a small fraction of total industry sales.D) the typical firmʹs long-run average total cost curve reaches a minimum at a level of outputthat is a large fraction of total industry sales.Answer: DDiff: 2Page Ref: 461/461Topic: Economies of ScaleLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking3
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