Question

1)

A) Cribbs and Babbles are the only 2 firms in the reusable baby diaper industry. Each company represents about 50% of the market share for the entire industry. There are no other competitors. This is an example of what?

A. Imperfect competition

B. Monopolistic competition

C. Oligopoly

D. Monopoly

B) There are 16 food vendors who are set up outside of a music festival. This is an example of what?

A. Perfect competition

B. Monopolistic competition

C. Oligopoly

D. Monopoly

C) Kranston Foods is a profit maximizing firm in a monopolistic competition industry. If they produce 100 units and their marginal revenue is $55 then what is their marginal cost?

A. $5.50

B. $55

C. $550

D. $5500

D) Based on the information below calculate the four-firm concentration ratio for this industry.

Below is a list of the top 6 firms and their corresponding market shares:

Linds Co - 20%

Jub Co - 12%

Wee Co - 11%

Coz Co - 9%

Frank Co - 8%

Hatt Co - 6%

A. 66

B. 60

C. 52

D. 43

E) Based on the information below calculate the HHI for this industry.

Below is a list of the top 6 firms and their corresponding market shares:

Linds Co - 50%

Jub Co - 16%

Wee Co - 11%

Coz Co - 9%

Frank Co - 8%

Hatt Co - 6%

A. 3058

B. 4211

C. 4832

D. 5529

F) What is the highest that the HHI could ever be?

A. 100,000

B. 10,000

C. 1,000

D. 100

G) McAdam's Cabinets is a commercial producer of kitchen cabinets. Each year the company produces 479 tons of air pollution through their manufacturing operations. This pollution is an example of what?

A. Negative externality

B. Positive externality

C. Command and control

D. Cap and trade

H) McAdam's Cabinets is a commercial producer of kitchen cabinets. The state just passed legislation that requires the company to install smoke stack scrubbers to reduce the amount of air pollution. This will cost the company $100,000 to install these scrubbers. The state legislation is an example of what?

A. Negative externality

B. Positive externality

C. Command and control

D. Cap and trade

I) Winston Industries just purchased permits to allow then an additional 50 tons of air pollution this year. They purchased the permits from a business that will not produce any air pollution. This permit exchange is an example of what?

A. Negative externality

B. Positive externality

C. Command and control

D. Cap and trade

J) What is another term for private benefit?

A. Profit

B. Social benefit

C. Social rate of return

D. Intellectual property

Answer 1

classmate 0 c. Oligopoly In case of Oligopoly Date Page two which are market shuchure, there are foins setting homegeneous product diaper) by simultan- coursly choosing quantities or price Monopolisht Bi pas competition In case of most compeletion there are large sellers there is no barrier of entry or exit from produce little homogeneous autput that are not branded or branded 2 may be differenzabed c) In monopolistic compelition, jums produce where MR = Me, this, if they produce 100 units, and MR = 455, then MC must be $55 + Thus, option 6 is correct answer D) Concentration ratio can be calculated as sun the top summing up the shares of top 4 firms in the Industry 20%. +12% +1% +9% 52% Option C) is correct answer Scanned by TapScanner