Author Question: The use of money as a medium of exchange I. lowers transaction costs. II. permits more ... (Read 78 times)

vinney12 · **on:** Jun 29, 2018

The use of money as a medium of exchange I. lowers transaction costs. II. permits more specialization.

A) I only
B) II only
C) Neither I nor II
D) Both I and II

Question 2

Suppose an industry is composed of 10 firms. Each firm's share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will

A) remain unchanged.
B) decrease as there are fewer firms in the industry.
C) increase.
D) depend on the market condition faced by the industry.