Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 14, Problem 8DQ
To determine
The industries with a high concentration ratio.
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There are claims saying that free flow of trade prevents monopoly. However, free flow of trade may cause monopoly through predatory pricing. For instance, a foreign industry may dump its goods in a country with free flow of goods strategy. Thus, it forces other rivals out of the market, and will get a monopoly position.
Please provide a counter-argument for the above claim
The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that supplies Hi-tech components. Use the graph to answer the questions that follow.
Suppose the demand and cost curves result in ABC Inc. Ltd earning an economic profit. Do you think ABC Inc. Ltd firm will earn profit in the longrun? Explain your answer. Assume all factors constant.
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Use the following table to calculate the four=firm concentration ratio for the U. S. auto market. Does this indicate a concentrated market or not? The table is............. GM 19% Ford 17% Toyota 14% Chrysler 11%
Chapter 14 Solutions
Economics: Principles & Policy
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