Table 16-1The following table shows the output produced by each of the top eight firms in four industries as well as the total industry output for those industries.FirmIndustry AIndustry BIndustry Cİndustry D150,00018,00037,00036,50035,50040,000247,00017,75039,0003.43,00017,25037,000438,00016,50034,00034,00032,00015,50032,00030,00025,00014,25029,50025,00017,00012,75026,50019,00012,0008,00011,00023,000Total270,000130,000300,000250,000Refer to Table 16-1. Which industry has the highest concentration ratio?Oa. Industry AOb. Industry DOc. Industry BOd. Industry C

Concentration ratio is used to assess the extent to which a given market is oligopolistic.

The following table shows the output produced by each of the top eight firms in four industries as well as the total industry output for those industries. Firm Industry A Industry B Industry D 40,000 Industry C 1 50,000 18,000 37,000 36,500 35,500 2 47,000 17,750 39,000 43,000 17,250 37,000 4 38,000 16,500 34,000 34,000 32,000 15,500 32,000 30,000 25,000 14,250 29,500 25,000 26,500 23,000 17,000 12,750 19,000 8 8,000 11,000 12,000 Total 270,000 130,000 300,000 250,000 Refer to Table 16-1. Which industry has the highest concentration ratio? Da. Industry A Ob. Industry D Oc. Industry B

The following table shows the output produced by each of the top eight firms in four industries as well as the total industry output for those industries. Firm Industry A Industry B Industry D 40,000 Industry C 1 50,000 18,000 37,000 36,500 35,500 2 47,000 17,750 39,000 43,000 17,250 37,000 4 38,000 16,500 34,000 34,000 32,000 15,500 32,000 30,000 25,000 14,250 29,500 25,000 26,500 23,000 17,000 12,750 19,000 8 8,000 11,000 12,000 Total 270,000 130,000 300,000 250,000 Refer to Table 16-1. Which industry has the highest concentration ratio? Da. Industry A Ob. Industry D Oc. Industry B

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 28CTQ: What would be evidence of serious competition between firms in an industry? Can you identify two...

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Table 16-3 The following table shows the output produced by each of the top eight firms in four industries as well as the total industry output for those industries. Firm 1 2 3 4 5 6 7 8 Total Industry A 50,000 47,000 43,000 38,000 32,000 25,000 17,000 8,000 270,000 approximately 46% approximately 54% approximately 57% Industry B Industry C 18,000 37,000 17,750 36,500 17,250 35,500 16,500 34,000 15,500 32,000 14,250 29,500 12,750 26,500 11,000 23,000 130,000 300,000 approximately 61% Industry D Refer to Table 16-3. What is the concentration ratio for Industry B? 40,000 39,000 37,000 34,000 30,000 25,000 19,000 12,000 250,000
Complete the table below and graph the AR, MR, MC, and AC Q price TR AR MR TC MC Profit 0 30 0 0 0 70 70 -70 5 27 135 27 27 135 65 0 10 24 240 24 21 197 62 43 15 21 315 21 15 252 55 63 20 18 360 18 9 300 48 60 25 15 375 15 3 345 45 30 30 12 360 12 -3 383 38 -23 35 9 315 9 -9 428 45 -113 40 6 240 6 -15 478 50 -238 45 3 135 3 -21 533 55 -398 50 0 0 0 -27 593 60 -593 Provide a brief explanation of the firm's behavior to set production at 20 units at the price of P18 per unit
Table 16-2 The following table shows the total output produced by the top six firms as well as the total industry output for each industry. Firm Industry J 14,288 Industry K 7,878 Industry L Industry M 1,554 22,987 12,128 7,242 1,486 21,444 3 11,192 5,321 1,294 18,787 4 3,245 4,900 1,287 16,454 2,442 4,526 911 12,890 1,004 3,800 745 10,045 Total 55,050 70,250 7,340 198,400 Refer to Table 16-2. Which industry has the highest concentration ratio? O a. Industry M Ob. Industry K O. Industry L O d. Industry J
Explain briefly the common market structures by citing a specific example of companies & their market competition
In Brazil, coffee beans are cultivated by a very large number of small farms that all produce beansof similar quality and taste at similar costs. Land is still plentiful, and the equipment required isaffordable enough to allow new farming businesses to start up under current market conditions.However, better production techniques, especially alternatives to polluting fertilisers anddeforestation, are needed in this industry. Using the theory and models of industry structure, examinethis industry. Should government be worried about any aspect of how an industry with this marketstructure will perform?
ok In the table below are data on five different industries and the market shares for each of the firms in the industry. Assume that there is no foreign competition, entry into the industry is difficult, and that no firm in each industry is on the verge of bankruptcy. In the column to the right of the table, calculate the Herfindahl index. Tint erences esc Market Share of Firms in Industry Industry Alpha Beta Mc Graw Hill Q Short Answer Toolbar navigation Kappa Delta Epsilon BIVS -50--- Di 2 Which industry has the most market power and which industry has the least? P @ W # 3 E 4 Herfindahl index R 1 33 25 20 60 25 5 STAZA % 23 456 22 14 12 10 9 25 25 15 10 20 20 20 20 10 10 10 10 20 15 15 15 10 & Search Protecto Pray T 6 Y 1.5 7 2 Next > 8 1 O O * P |{ d
Question 38 MC АТС 20 -MR 16 30 40 Firm What is the amount of profit in the above graph? 120 160 40 None of these answers
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 25,400 $104,000 $0.54 50,400 154,000 1.04 75,400 191,500 2.54 100,400 279,500 3.04 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $2.54. At that price the total market quantity demanded is 105,560,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.54 is only 75,400. How many firms will be in this industry? firm(s)
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $1.71 is only 150,800. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine…
Unsure which is the correct answers Suppose that three firms make up the entire wig manufacturing industry. One has a 50% market share, and the other two have a 25% market share each. The Herfindahl index of this industry is a. 3,750 b. 1,000 c. 10,000 d. 5,000 e. 2,500 Mane Attraction, one of the firms with a 25% market share in the wig manufacturing industry, leaves the market. This would cause the Herfindahl index for the industry to __-- a. remain the same b. fall c. rise The largest possible value of the Herfindahl index is 10,000 because: a. an index of 10,000 corresponds to 100 firms with a 1% market share each b. an index of 10,000 corresponds to a monopoly firm with 100% market share c. an industry with an index higher than 10,000 is automatically regulated by the Justice Department
V11 Read the article Internationally Acclaimed Quilter Claims Fraud in Lawsuit Seeking Share of Quilts’ Profits. According to the article, “[t]he lawsuit says any agreement between the quilters and the defendants was oral and was not put into writing.” After studying the statute of frauds in this unit, why is the failure to put the agreement into writing problematic? Be specific in your answer, citing any of the statutes of frauds that you think may apply to the lawsuit. "New Answer
In the world market for copper, there are two types of copper mines: Type 1 (primarily locatedin North America) and Type 2 (primarily located in Asia and South America). Each type of mineincurs five “buckets” of costs: (1) direct materials; (2) energy inputs (such as electricity andnatural gas); (3) shipping; (4) production labor; and (5) production and administrative overhead.Direct materials, energy inputs, and shipping services are purchased in competitive spotmarkets, and the total monthly costs that a firm incurs on these items vary in direct linearproportion to the quantity of copper produced in the mine during that month. If a mineproduces no copper in a particular month, it incurs no direct materials, energy, or shippingcosts.By contrast, the total monthly costs for production labor and overhead are volume- insensitive:the levels of these costs do not vary with the volume of production in the mine. Even if themine temporarily suspended operations for a month (i.e., produced…