Chapter 24 Flashcards
The concentration ration is the percentage of ____ earned by the _____largest firms in the industry.
A. Sales; four
The tobacco, healthcare wholesale, and beverage industries all have a concentration ration of over____.
C. 80
________ is(are) legal in the United States.
B. Cut throat competition
A highly oligopolized industry would have a _____Herfindahl-Hirschman Index and a _____ concntration ratio.
A. high; high
Which statement is false #1?
A. Oligopolies are illegal in most states
B. Most oligopolies engage in outright collusion
C. Ford Motor company is an oligopoly
D. None of these statements is false.
A. Oligopolies are illegal in most states
A Herfindahl-Hirschman Index of 10,000 would mean there is (are) how many firm(s) in the industry?
A. 1
The market structure in which the behavior of an given firm depends on the behavior of the other firms in the industry is
C. Oligopoly
Which one of these firms would be an oligopolist?
A. Proctor and Gamble
Which statement is false #2?
A. Cigarettes, motor vehicles, and pepelines are industries with high concentrations ratios.
B. Oligopolized industries have higher concentration ratios than monopolistic competitors.
C. The Elecric Machinery Conspiracy case involved covert collusion.
D. None is false
D. None is false
Oligopoly is characterized by
C. high barriers to entry
The closer the industry concentration ration is to 100, the more likely it is that
C. there is a small number of large firms
Market share questions with chart #1? Which is the highest concentration ration
B. is in the Industry Y.
Market share questions with chart #2? Which is the highest Herfindahl-Hirschman Index
A. is in the Industry X
A exmaple of an oligopoly market would be in which _____firm(s) sell(s) _____% of the output.
C. 4;80
Each of the following is an oligopoly except
D. Microsoft (computer operation systems)
Which of the following represents an illegal control of prices?
A. Colluding
A cartel is
B. a group of firms acting under collusion to control output and maximize group profits
Which of the following is a legal way to reduce the price problems oligopolies face?
C. Price leadership
If the market share of the largest firm is an industry is 50%, then theoretically, the highest possible Herfindahl-Hirschman Index for this industry would be
B. 5000
An industry with four firms each having a 25% market share would have a HErfindahl-Hirschman Index (HHI) of
D. 2,500
At one end of the competitive spectrum is cutthroat competition. At the other end is (the)
A. Cartel
A concentration ratio of 100 would imply that the industry has _____.
B. no more than four firms
Corporate concentration can be measured by
C. both the concentration rato and the Herfindahl-Hirschman index
As foreign imports become a greater percentage of sales in oligopolized industries, the concentration ratio and the Herfindahl-Hirschman index
B. become less accurate as a measure of concentration
Which statement is true #1?
A. The hgiher the concentration ratio, the higher the degree of oligopolization.
B. The lower the concentration ration, the higher the degree of oligopolization
C. The concentration ratio remains constant as teh degree of oligopolization rises.
D. There is no relationship between the concentration ratio and teh degree of oligopolization.
A. The hgiher the concentration ratio, the higher the degree of oligopolization.
