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# In Exhibit L-2, the table shows the market shares of five firms that operate in three

In Exhibit L-2, the table shows the market shares of five firms that operate in three
different industries. The highest concentration ratio appears in

a.Industry I

b.Industry II

c.Industry III

d.Industries I and III (their concentration ratios are identical)

e.Industries II and III (their concentration ratios are identical)

22.              In Exhibit L-2, the table shows the market shares of five firms that operate in three
different industries. According to the text, Industry I would be classified as a

a.balanced oligopoly

b.unbalanced oligopoly

d.cartel

e.price discriminating oligopoly

23.              In Exhibit L-2, the table shows the market shares of five firms that operate in three
different industries. According to the text, Industry III would be classified as a

a.balanced oligopoly

b.unbalanced oligopoly

d.cartel

e.price discriminating oligopoly

24.              In Exhibit L-2, the table shows the market shares of five firms that operate in three
different industries. The HHI in industry I is

a.20 percent

b.20

c.400

d.2,000

e.80 percent

25.              In Exhibit L-2, the table shows the market shares of five firms that operate in three
different industries. The HHI in industry III is

a.20 percent

b.20

c.4,050

d.1,600

e.80 percent

26.              In Exhibit L-2, the table shows the market shares of five firms that operate in three
different industries. Using the HHI, the most concentrated of these three industries is
(are)

a.Industry I

b.Industry II

c.Industry III

d.Industries I and III (their HHIs are identical)

e.Industries II and III (their HHIs are identical)

27.              In an unbalanced oligopoly

a.only two firms make up the oligopoly

b.the sales of the leading firms are distributed unevenly

c.the sales of the leading firms are distributed evenly

d.the sales of the 4 leading firms is less than 50 percent

e.the market share of the 4 leading firms equals 100 percent

28.              A firm with substantial market power must be in a ____________ industry.

a.monopoly or oligopoly

b.perfectly competitive

c.monopolistically competitive

d.perfectly competitive or monopolistically competitive

e.perfectly competitive or a monopoly

29.              According to the text, U.S. manufacturing data show that

a.the economy is rapidly becoming more concentrated into the hands of the few

b.the economy today is less concentrated than it was in 1865, just after the Civil War

c.concentration in the economy has remained fairly stable over the past 40 years

d.the U.S. economy is much more concentrated than most other industrialized nations
of the world

e.concentration has fallen rapidly over the past 40 years

30.              In an unbalanced oligopoly,

a.one firm has significantly greater market power than any other in the industry

b.only one firm exists in the industry

c.the industry is rapidly converging into a monopolistically competitive industry

d.all firms have near-equal market share

e.the four-firm concentration ratio exceeds 100 percent

Dec 12 2019 View more View Less