Author Question: On a national level, the concentration ratio for grocery stores is very low. But, the true market ... (Read 32 times)

nummyann · **on:** Jun 29, 2018

On a national level, the concentration ratio for grocery stores is very low. But, the true market for grocery stores is local in nature. What limitation does the geographic market put on the measure of concentration for grocery stores?

A) On the local level, grocery stores are more concentrated than they appear on the national level.
B) On the local level, grocery stores are not as concentrated as they appear on the national level.
C) The level of concentration is overestimated when viewing the national level.
D) Both answers A and C are correct.

Question 2

Jodie has indifference curves for CDs and colas, with CDs on the vertical axis. The flatter her indifference curves are, the

A) smaller her average rate of substitution.
B) larger her average rate of substitution.
C) smaller her marginal rate of substitution.
D) larger her marginal rate of substitution.