questions a to e

Question 6 [10 points] a) What does the fourrm concentration ratio for a particular industry measure? 0 The degree to which the four largest rms account for the total industry supply 0 The degree to which the four largest rms affect the country's wages for workers 0 The degree to which the four largest rms differentiate their products 0 All of the answers are correct b) What reasons tend to give rise to an oligopoly or duopoly market structure? 0 Economies of scale persist up to very high output levels 0 Competition from foreign rms is restricted O The start-up xed costs are very high 0 All of the answers are correct c) Suppose a monopolistically competitive rm has MC=4Q+5. Its demand is P=145-3Q and marginal revenue is MR=145-60. What is its prot-maximizing output level? 0 16 O 17 O 15 O 14 d) Continue with part (c): What is its prot maximizing price? 0 $103 0 $101 0 $100 0 $102 e) A monopolistically competitive rm will _ at the minimum of its average cost curve. This is the result of _. 0 Not produce; negatively sloped demand curve 0 Produce; negatively sloped demand curve 0 Not produce; free entry and exit 0 Produce; free entry and exit