1. ability to identify consumer types. inability to resell the good. differences
ID: 1181318 • Letter: 1
Question
1.
ability to identify consumer types. inability to resell the good. differences in demand elasticities. all of the statements associated with this question are correct. 2. Suppose that the demand in a particular industry is given by Qd = 500 - 2P. When the market price in the industry is $50 per unit, total demand in the industry is _________. Furthermore, assume that the entire market consists of four firms that share the market equally. The HHI under these conditions is then 225 units and 1,600. 400 units and 2,500. 225 units and 3,333.33. 400 units and 10,000. 3. The industry elasticity of demand for gadgets is -2, while the elasticity of demand for an individual gadget manufacturer's product is -2. Based on the Rothschild approach to measuring market power, we conclude that there is little monopoly power in this industry. there is significant monopoly power in this industry. the Herfindahl index for this industry is -2. the Herfindahl index for this industry is 2. 4. The number of efficient plants compatible with domestic consumption of the refrigerator industry in Sweden is 0.7. Which of the following implications is (are) correct? In the absence of imports, the refrigerator industry in Sweden is monopolistic. The refrigerator industry in Sweden is perfectly competitive. The refrigerator industry in Sweden is monopolistically competitive. None of the statements associated with this question are correct. 5. The peak of the isoprofit curve has which of the following characteristics? It is the point at which Monopoly profits are always achieved. It is the point at which the isoprofit curve crosses the reaction function. It is the point on the isoprofit curves associated with the highest profit. It is the point on the isoprofit curves Cournot competitors can efficiently achieve collusion profits. 6. The ranking of industries by the four-firm concentration ratio usually, but not always, reveals the same pattern as ranking by HHI. When a discrepancy is found it is usually due to the following: The four-firm concentration indices contain data on only the largest four-firms, while the HHI are based on data for all firms in the industry. The HHI is based on squared market shares, while the four-firm concentration ratio is not. The four-firm concentration indices contain data on only the largest four-firms, while the HHI are based on data for all firms in the industry and the HHI is based on squared market shares, while the four-firm concentration ratio is not. The two indices are designed to measure two different attributes of marketsExplanation / Answer
1.) all of the statements associated with this question are correct.
2.) 400 units and 2,500.
3.) there is significant monopoly power in this industry.
4.) In the absence of imports, the refrigerator industry in Sweden is monopolistic.
5.) It is the point at which the isoprofit curve crosses the reaction function.
6.) The four-firm concentration indices contain data on only the largest four-firms, while the HHI are based on data for all firms in the industry and the HHI is based on squared market shares, while the four-firm concentration ratio is not.
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