1.An industry is comprised of 20 firms, each with a 5% market share. What is the four-firm concentration ratio of this industry?
a.0.16
b.0.25
c.0.80
d.0.20
2.A Herfindahl index of 0 suggests:
a.monopolisitc competition
b.perfect competition
c.oligopoly competition
d.monopoly
3.If the possibility for economies of scale are large, firms can reduce their average total costs by:
a.selling off their subsidiaries
b.eliminating bureaucratic costs
c.hiring professional managers
d.merging into even larger firms
4.He was looking to invest money in a market structure without market power.. In this case, He should invest in an industry within:
a.Perfect Competition
b.Oligopoly
c.Monopolistic competition
b.Perfect and monopolistic competition
