Author Question: Suppose an industry has total sales of 25 million per year. The two largest firms have sales of 6 ... (Read 143 times)

Cooldude101 · **on:** Jun 29, 2018

Suppose an industry has total sales of 25 million per year. The two largest firms have sales of 6 million each, the third largest firm has sales of 2 million, and the fourth largest firm has sales of 1 million.

The four-firm concentration ratio for this industry is A) 36 percent.
B) 60 percent.
C) 50 percent.
D) 25 percent.

Question 2

Frictional unemployment will always exist since

A) some workers will always want to make a job transition.
B) the capitalist system promotes unemployment.
C) mismatches in skills will always exist.
D) the U.S. economy will continue to shrink.