Exam 10: Organizing Production

How would a merger between Coca-Cola and Pepsi Cola affect the four-firm concentration ratio for the soft drink market? How would it affect the Herfindahl-Hirschman Index for the soft drink market?

Which of the following about corporations is TRUE?

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 total opportunity cost?

When the cost of producing a unit of a good decreases as its output rate increases, there are economies of

Emma owns a firm that produces umbrellas. Currently, Emma produces 2,500 umbrellas a day. Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers. Emma is ________ efficient.

Which of the following is TRUE?

The market structure in which a large number of firms compete by making similar but slightly different products is called

It was more than a century ago that an engineer named Frederick Taylor walked into factories and starting timing workers with a stop watch. He dissected their movements, and organized them more efficiently. He turned factory production into a science. Suppose workers were paid a wage based on how much they produced. How does this firm organize production?

A market structure in which many firms compete by making similar but slightly different products is called

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index

Which of the following CORRECTLY characterize principals and agents in important examples of the principal-agent problem?

-There are 9 firms in an industry with market shares in the table above. Calculate the HHI for the industry. What kind of market does this operate in and why?

Corporations that offer incentive pay schemes that link pay to meeting profit, production, or sales targets are doing so to cope with the

The most prevalent market structures in the U.S. economy are perfect competition and monopolistic competition.

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

-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?

-The table below shows four alternative techniques for assembling a car. Which of the four techniques for assembling a car cannot be economically efficient with any input prices?

-The table above shows four methods for producing 10 computer desks a day. If the cost of a worker is $100 a day and the cost of capital is $100 a day, the method that is economically efficient is ________.

Team production is a production process in which

The implicit rental rate for capital includes the