40. The situation where a largenumber of workers with the samequalifications offer their work to alarge number of competing firmsin the labor market is called...1. Completely competitive labormarket2. The monopsony3. Monopoly4. Oligopoly41. Under what conditions does thecompany's profit becomemaximum?1. TR>TC2. MR > MC3. TR=TC4. MR = MC.42. In determining GDP by theexpenditures it does not include ...1. Consumer spending2. Gross private domesticinvestment" 3. Wages of employees4. Government expenditures 43. In determining GDP by theincome method, it does not include1. Net exports2. Profit3. The percentage4. Rent44. Inflation is defined as...1. The price growth of any goods2. The increase in the average pricelevel over the year3. The change in the price of goodsover the year4. Shortage of goodsIX45. The Sum of GDP and thebalance of primary (net) incomefrom abroad is...1. Disposable income2. Gross national income3. Personal income4. Public wealth

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40. The situation where a large number of workers with the same qualifications offer their work to a large number of competing firms in the labor market is called... 1. Completely competitive labor market 2. The monopsony 3. Monopoly 4. Oligopoly

40. The situation where a large number of workers with the same qualifications offer their work to a large number of competing firms in the labor market is called... 1. Completely competitive labor market 2. The monopsony 3. Monopoly 4. Oligopoly

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 16.1IP

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Suppose we have two markets, A and B, each consisting of seven firms. The market shares of the 5 largest firms (ordered by market share) are shown in the table below. True or false? (i) The CR3 and CR4 concentration ratios both point to the same market (either A or B) having more market power. (ii) The 6th largest firm in market B captures at most 8 percent of the market. (iii) The HHI of market B is at most 1,798 (in units of squared percent). (Hint: for positive x and y, (x+y)2=x2+y2+2xy≥x2+y2.) (iv) The HHI of market A is definitely larger than the HHI of market B.
Indicate whether the statement is TRUE, FALSE, or UNCERTAIN and explain why. Answer 1 & 2 1. If a monopsonist faces a perfectly elastic supply curve, there will be no deadweightloss relative to the competitive outcome 2. In a Cournot duopoly market, the two firms agree to produce half of the monopolyoutput level for that market and split the resulting profit. Since the monopoly profit is the highest profit that can be obtained, the two firms will always stick to that agreement even if it’s not legally (or in any other way) binding.
EMERGENCY PLEASE: suppose a market consists 3 firms ( firm A, firm B, firm C) and firm A's sales account for 40% of market sales, while firm B and C each control 30% of the market. in this market, the four-firm concentration ration is therefore __________ and the Herfindahl-Hirshman index is equal to _____________. if the firm B and firm C merge, the new value of the Herfindahl-Hirshman index would change to__________. sothe Departement of Justice_________ likely to block this merger. suggestions for the first: suggestions for the second: suggestions for the third:
1) Explain the significance of the Prisoner's Dilemma, and how the model might be used to explain some forms of competition when there is uncertainty. 2) Explain the similarities and differences between Keynes' theory of consumption and Friedman's Permanent Income Hypothesis. 3) explain why the Marginal Rate of Substitution is equal to the price ratio for all goods, and its significance. 4) Briefly compare and contrast various models of how duopolists compete. 5) Explain whether the Efficient Market Hypothesis is a helpful theory, and why or why not. 6) Explain why financial theory rests on the mean and variance approach to the risk/return relationship. 7) Describe how Fisher and Modigliani helped explain our pattern of savings throughout our lifetime.
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N6 As the number of firms In an cligopoly becomes very lange, the price gets close to the perfiect competition price True False
practice 9 [LEARN-APPLY] A Firm Entry Game with Sequential Moves, Drawing Game Tree, Finding Rollbak Equilibrium / Subgame Perfect Equilibrium S4. Consider the rivalry between Firm A and Firm B to develop a new commercial jet aircraft. Suppose Firm B is ahead in the development process and Firm A is considering whether to enter the competition. - If Firm A stays out, it earns zero profit, whereas Firm B enjoys a monopoly and earns a profit of $1000 million. - If Firm A decides to enter and develop the rival airplane, then Firm B has to decide whether to accommodate Firm A peaceably or to fight by starting a price war. In the event of peaceful competition, each firm will make a profit of $300 million. If there is a price war, each will lose $100 million because the prices of airplanes will fall so low that neither firm will be able to recoup its development costs. Source: Chapter 3, Games of Strategy, by Avinash Dixit, Susan Skeath, David H. Reiley, 3rd edition, W.W. Norton &…
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Suppose a manufacturer and its retailer face the problem of double marginalization. If the manufacturer sets the wholesale price equal to its marginal cost c and in addition, requires the retailer to pay a fraction α (between 0 and 1) of its profit. 4.a Write down the retailer’s profit maximization problem. Will this practice solve the double marginalization problem? (That is, will this practice maximize their joint profit?) 4.b Suppose the retailer is required to pay a fraction of α of its sales (i.e., total revenue). Write down the retailer’s profit maximization problem. Will this practice solve the double marginalization problem?
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H7. For q1=120-2p1-p2 and q2=120-2p2+p1, show that the duopolists have incentives to collude as well as find the -joint profit-maximizing price, output and profit and find each firm’s price, output and profit. What is the optimal defection of each firm, is collusion Nash equilibrium? Show in 2x2 matrix. Is it a prisoner’s dilemma?