Solved by verified expert :60) A concentration ratio measures
A) the average size of the firms in the industry.
B) the sales of the three largest firms in the industry minus the
costs of these three largest firms in the industry.
C) the share of industry sales accounted for by the largest firms in
the industry.
D) the excess capacity found in a particular oligopolistic industry.
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62) The percentage of all sales contributed by the leading four or
leading eight firms in an industry is known as
A) a horizontal merger. B) a vertical merger. C) economies to
scale.
D) the concentration
ratio.
63) Which of the following statements about concentration ratios is
correct?
A) A high concentration ratio indicates that the industry is a
monopoly.
B) A high concentration ratio indicates that the industry is
monopolistically competitive.
C) A high concentration ratio suggests that the industry is
characterized by strategic independence.
D) A high concentration ratio suggests that the industry is
characterized by strategic dependence.
64) A concentration ratio is used to
A) determine whether a market structure is oligopoly.
B) determine the importance of labor in the production process.
C) determine the degree of homogeneity in the market.
D) see if a firm qualifies for federal assistance.
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65) Refer to the above table. The four-firm concentration ratio is A)
85.8 percent.
B) 75 percent. C) 72.5 percent. D) 59.2 percent.
66) Refer to the above table. The eight-firm concentration ratio is A)
100 percent.
B) 96 percent. C) 94.5 percent. D) 87.2 percent.
67) In a 50-firm industry, two of the smallest firms merge. Yet the
4-firm concentration ratio and the 8-firm concentration ratio did not change.
All things considered, we can say that the industry has
A) moved closer to
pure competition because the number of firms decreased.
B) moved farther away
from competition because the number of firms decreased.
C) experienced no change in
competition even though the number of firms decreased. D) to be identified
first; otherwise there is no way to tell.
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68) Refer to the above table. The four-firm concentration ratio is A)
86.5 percent.
B) 33.3 percent. C) 13.3 percent. D) 11.6 percent.
69) A market structure characterized by a small number of
interdependent sellers is called a(n) A) monopoly.
B) monopolistic competition.
C) monopsony.
D) oligopoly.
70) If a retail food chain merged with a meat packing company, this
would be an example of a A) horizontal merger.
B) conglomerate merger. C)
vertical merger.
D) diagonal merger.
