Answer: True
Explanation:
The Four-Firm Concentration Ratio simply measures aggregate market share of the four biggest firms that are in a particular industry while the Eight-Firm Concentration Ratio measures that of the eight biggest firms.
It is true that in recent years, industries with high four- and eight-firm concentration ratios include cars, cereal breakfast foods, and farm machinery.
Answer:
c. Increased competition
Explanation:
This is an example of increased competition. When there is no trade, local producers have a monopoly on their industry. Because of this, they are able to decide on their own how they want to price their products. When trade exists, consumers are able to buy goods from more producers at fairer prices. This forces the local producers to lower their prices in order to remain competitive.
Answer:
By $297 Nancy cash flow are more worthy in present value terms.
Explanation:
Marry
APV = C x [ ( 1 - ( 1 + i )^-n ) / i ]
C = Monthly payment = $9,900
Interest rate = i = 12% = 0.12
n = number of years = 34 years
APV = $9,900 x [ ( 1 - ( 1 + 0.12 )^-34)/0.08 ]
APV = $800 x 11.2578
APV = $82,203
Nancy
PV of perpetuity = Cash flow / Interest rate = $9,900 / 0.12 = $82,500
Difference = $82,500 - $82,203 = $297
By $297 Nancy cash flow are more worthy.
Answer:
Binding
$100
200
200
Shortage
Explanation:
A price ceiling is when the government or an agency of the government sets the maximum price for a good.
A price ceiling is binding when the price ceiling is below the equilibrium price.
To find the equilibrium price, equate qs to qd because at equilibrium, quantity supplied is equal to quantity demanded.
2P = 300 - P
3P = 300
P = 100
Equilibrium price is $100.
$100 > $90. Therefore, price ceiling is binding.
To find quantity supplied, plug in the value of P into the equation for quantity supplied
QS = 2(100) = 200
To find quantity demanded, plug in the value of P into the equation for quantity demanded
QD = 300 - 100 = 200
when price is below equilibrium price, quantity demanded increases while the quantity supplied decreases. This leads to a shortage.
I hope my answer helps you