Exam 10: Organizing Production

-The above table shows the market shares for all the landscaping services in a suburban area. A merger between the three largest firms would

A market structure in which a small number of firms compete is called

If a market is shared equally by four firms, the Herfindahl-Hirschman Index is

Economies of scale exist when the ________ a unit of a good ________.

-The table above gives the market share of sales of firms in the retail clothing market. What is the four-firm concentration ratio?

The national concentration ratio

One reason why firms replace markets for some activities is that firms

What is the difference between a normal profit and an economic profit?

-The table below shows four alternative techniques for assembling a car. The cost of labor is $20 per hour, and the cost of capital is $10 per hour. Which of the four techniques for assembling a car is economically efficient?

During the twentieth century, the market structure of the U.S. economy has

If economic profit is equal to zero, then

Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's economic profit?

Production Information for Scully's Splendid Spacecrafts -In the above table, if the price of labor is $10 per hour and the price of capital is $20 per unit, which method of producing 50 space crafts is economically efficient?

Which of the following businesses have limited liability?

"When the cost of producing a unit of a good falls as its output rate increases" is the definition of

-The above table shows the market shares for all the landscaping services in a suburban area. The four-firm concentration ratio equals

In a given market, a large number of firms sell a similar product. Consumers think that each firm's product is somewhat different from that of its competitors. This market is

-The table above shows sales of the firms in the chocolate industry. The Herfindahl-Hirschman Index in the industry is

The ________ the Herfindahl-Hirschman Index (HHI), the ________ the industry.

Which of the following statements is TRUE? I. A firm that is not economically efficient does not maximize profit. II) Economic efficiency depends on the relative costs of resources. III) A technological efficient firm is also economically efficient.