23 which industry has the highest four firm

23) Which industry has the highest four
-
firm concentration ratio?
A) cigarettes B) retail gasoline stations
C) college bookstores D) discount department stores
Answer: A
23)
Diff: 1 Page Ref: 461/461
Topic: Concentration Ratio
Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in
oligopolies
AACSB:
6

24) Which government agency publishes four - firm concentration ratios? 24)
Diff: 1 Page Ref: 460/460
Topic: Concentration Ratio
Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in
oligopolies
AACSB: Reflective Thinking
25) The profit - maximizing level of output and the profit - maximizing price for an oligopolist cannot
be calculated when we don ʹ t know
C) what the concentration ratio for the oligopolist ʹ s industry is.
25)
D) the type of barrier to entry that exists in the oligopolist ʹ s industry.
Answer: A
Diff: 2 Page Ref: 460/460
Topic: Characteristics of Oligopoly
Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in
oligopolies
AACSB: Reflective Thinking
26) Because of the shortcomings of concentration ratios, some economists prefer another measure of
competition called
C) the Marginal Revenue - Marginal Cost Index.
26)
D) the Herfindahl - Hirschman Index.
Answer: D
Diff: 1 Page Ref: 461/461
Topic: Concentration Ratio
Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in
oligopolies
AACSB: Reflective Thinking
27) Ocean Spray is considered to be an oligopoly firm because, until the 1990s, it faced little
competition in the market for fresh and frozen cranberries. Why?
A) The federal government imposed a high tariff on cranberry imports. During the 1990s the
tariff was eliminated, but Ocean Spray still controls about 80 percent of the cranberry market.
B) Ocean Spray had a patent on the production of cranberries that gave the company the
27)
exclusive right to market its product for 20 years. The 20 - year period ended in the 1990s.
C) Until the 1990s, Ocean Spray controlled almost the entire supply of cranberries.
D) Ocean Spray was able to achieve significant economies of scale in the production of
cranberries. Beginning in the 1990s, other firms finally achieved economies of scale as well,
but Ocean Spray still controls about 80 percent of the cranberry market.
Answer: C
Diff: 3 Page Ref: 462/462
Topic: Barriers to Entry
Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in
oligopolies
AACSB:
7