Exam 10: Organizing Production

A corporation ________ taxes on its profits and its stockholders ________ taxes on any dividends made to them by the company.

Joe's Pizza Shop only makes pizza. If each pizza requires five people, each of whom specializes in one task, this method of production is an example of

The decision about whether a firm in each particular industry must operate as a proprietorship, partnership, or corporation is made by the Internal Revenue Service.

If an industry is monopolized by one firm, the four-firm concentration ratio equals

"When the cost of producing a unit of a good falls because the firm uses specialized resources to produce a range of goods and services" is the definition of

Over a given period, economic depreciation is the change in capital equipment's

Bud opened a flower shop. He rented a building for $9,000 a year. To buy equipment for the store, he withdrew $10,000 from his savings account, which earned an annual interest rate of 3 percent. During the first year of operation, Bud paid $4,000 for utilities and $12,000 to his suppliers. The store's total annual revenue was $55,000. The market value of the store's equipment at the end of the year was $8,000. If Bud had not started this business, he would have continued to work as an employee at another flower shop for $30,000 a year. What was Bud's opportunity cost of running his business?

The Herfindahl-Hirschman Index is definitely larger in a ________ market than in a ________ market.

If 10 firms share the sales of the market equally, the four-firm concentration ratio is ________ percent.

-The table above shows sales of the firms in the broomstick industry: a) Calculate the four-firm concentration ratio. b) Calculate the Herfindahl-Hirschman Index. c) Based on your calculations, what is the structure of the industry?

In monopolistic competition, there are ________.

When Jitters Coffee Company, Inc., can lower the cost of packaging a pound of coffee by doubling the quantity packaged each day, it is achieving

An industry with a high concentration ratio might still be competitive if

Which of the following may yield economies of team production for Jitters Coffee Company, Inc.?

-The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $6 and the price of a unit of capital is $30, then the economically efficient technique is

Which of the following factors helps explain limitations of concentration measures?

A firm's opportunity costs ________.

Suppose the four-firm concentration ratio for an industry is 10 percent. This value indicates ________. If the four-firm concentration ratio for another industry is 95 percent, this value indicates ________.

Quick Auto Service will do oil changes. If each oil change is done by five people, each of whom specializes in one task, this is an example of

There are six firms in an industry, with market shares of 50 percent, 25 percent, 10 percent, 10 percent, 3 percent and 2 percent. The four firm concentration ratio is ________, and the HHI is ________.