Exam 10: Organizing Production

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

-The table above shows four methods for producing 10 computer desks a day. If the cost of a worker is $50 a day and the cost of capital is $150 a day, ________ economically efficient.

If the Herfindahl-Hirschman Index for an industry is 8,528, is the industry competitive or concentrated?

Proprietorships generally have unlimited liability, whereas partnerships and corporations have limited liability.

A baseball player who has signed a long-term contract with his club and then constantly says he is injured and cannot play is an example of ________.

Techniques for making 100 pizzas -Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is economically efficient?

Which of the following is a CORRECT statement?

Widgets Gadgets Blodgets -In the above table, based on the four-firm concentration ratio, which industry is the most concentrated?

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

Economies of team production exist when the

Mr. Blowfish opened a seafood store in December. He borrowed $60,000 from a bank at an annual interest rate of 8 percent. He used the funds he borrowed to purchase $60,000 of capital equipment. Over the year, he rented a building for $50,000 a year. During the first year of operation, Blowfish paid $45,000 to his employees, $20,000 for utilities, and $25,000 for raw fish he bought from other firms. In December of the next year, the market value of his capital was $50,000. Blowfish's best alternative to running the seafood store is to work for a grocery store as a sales clerk for $20,000 a year. a) What is the economic depreciation of Blowfish's capital? b) What are Blowfish's total opportunity costs? c) What is Blowfish's economic profit?

Fatz Confectionery is a candy company that operates at the risk of unlimited liability for its many owner in case, for instance, all of its former employees win a class action lawsuit because of "sugar-lung" developed over decades of working there. Thus Fatz is a

Lucinda starts a business consulting company. She makes all the business decisions and bears the risk of running the business. The typical payment for Lucinda's work is ________.

Techniques that produce 100 sweaters -In the above table, the technique that is never economically efficient is

Giving managers an ownership stake in a company is an example of

Which market type has characteristics as follows: large number of firms, differentiated product?

In a market where firms are successful in convincing their customers that their product is different from their competitors' product but otherwise have no barriers to entry would be best characterized by

The vast majority of all business sales are accounted for by

Two university graduates, Bill and Steve, worked for an advertising agency at an annual salary of $40,000 each for 3 years after they graduated. Then, they decided to quit their jobs and start a partnership that designs and builds Web sites. They rented an office for $12,000 a year and bought capital for $30,000. To pay for the equipment, Bill and Steve borrowed money from a bank at an annual interest rate of 6 percent. During their first year of operation, the partners' total revenue was $100,000. The market value of their capital at the end of the year was $20,000. If Bill and Steve do not design Web pages, their best alternatives are to return to their previous job. a) What is the firm's economic depreciation? b) What are the partnership's costs? c) What is the firm's economic profit in the first year of operation?

The air travel market, which is dominated by a few large firms, is an example of