Exam 10: Organizing Production

In September 2008, Toyota Motor's share of the U.S. auto sales market was 15 percent, Ford's market share was 12.1 percent, GM's was 29.1 percent, Honda's was 10 percent, Nissan's share was 6.2 percent, and Chrysler's market share was 11.1 percent. What is the four-firm concentration ratio in the auto market?

If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that does only one or the other, this would be an example of

For monopoly

When Acme Inc. produces a certain amount of output by using the least amount of inputs, Acme Inc. definitely

A manager in a corporation is likely to be

The manufacturing sector is dominated by

Techniques that produce 100 sweaters -In the above table, the technique that is not technologically efficient is

There are 6 firms in a market and the market shares of the firms are 40 percent, 30 percent, 10 percent, 8 percent, 7 percent, and 5 percent. The four-firm concentration ratio is equal to

The maximum value that the Herfindahl-Hirschman Index can attain is

If worker output is not measurable in physical units, and employees are hard to monitor, it would be best to organize the firm using

One of the ways of coping with the principal-agent problem is

The profits of a proprietorship are

What is the main advantage and the main disadvantage of organizing a businesses as either a proprietorship or as a partnership rather than as a corporation?

-The table above lists the market shares of the twenty makers of personal computers. The Herfindahl-Hirschman Index for this industry equals

Which of the following is a reason why firms may be more efficient than markets as coordinators of economic activity?

The Roomba 570 is a robotic vacuum cleaner made and sold by iRobot. It can vacuum 4 rooms on a single battery charge and it costs $10 worth of electricity to charge the Roomba. Lynn is a house cleaner and can vacuum 4 rooms in 1/2 hour with a traditional vacuum. Suppose you want the 4 rooms in your house vacuumed once a week for one year. Ignoring the cost of any electricity Lynn uses, which method is economically efficient if Lynn charges $20 per hour? $30 per hour?

________ coordinate economic activity in which there are substantial ________.

The four-firm concentration ratio equals the percentage of the value of ________ accounted for by the four ________ firms in the industry.

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 technologically efficient?

Techniques that produce 100 sweaters -Using the data in the above table, if the price of an hour of labor is $20 and the price of a unit of capital is $10, then the most economically efficient technique for producing 100 sweaters is