Question Description
1. Which market structure(s) will have zero economic profits in the long run? 2. Which market structure(s) will be a price maker and have barriers to entry?
3. There are currently 8 firms in a particular market. There firm sales are given in the table below. What is the four-firm concentration ratio for this industry? Would you classify it as an oligopoly?
|
Firm |
Sales |
|
1 |
$1,000 |
|
2 |
$1,500 |
|
3 |
$2,000 |
|
4 |
$2,500 |
|
5 |
$3,000 |
|
6 |
$1,000 |
|
7 |
$500 |
|
8 |
$2,500 |
4. Although market structures vary widely in their characteristics, what is one common aspect among all of them? Does your previous answer have any potential calculation?
5. In the long run, which market structures are likely to have
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