In a 50-firm industry, two of the smallest firms merge. Yet the 4-firm concentration ratio and the 8-firm concentration ratio did not change. All things considered, we can say that the industry has
A) moved closer to pure competition because the number of firms decreased.
B) moved farther away from competition because the number of firms decreased.
C) experienced no change in competition even though the number of firms decreased.
D) to be identified first; otherwise there is no way to tell.
Question 2
The long-run effect of increasing government budget deficits
A) is a redistribution of real GDP from privately provided goods to government provided goods.
B) is no impact on equilibrium real GDP.
C) is to increase of price level.
D) all of the above.
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