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1. Suppose that the 6 firms in an industry have market shares of 35%, 20%, 15%, 15%, 10%, and 5%.
a) What is the four-firm concentration ratio in this industry? Show all calculations and explain what a concentration ratio.
b) What is the Herfindahl index for this industry? Show all calculations and explain what a Herfindahl index .
c) Suppose another industry has a Herfindahl index of 4000. What can you conclude about the relative competitiveness of these two industries?
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Assume you also have the following additional macroeconomic information of Bush Garden economy in the context of Keynesian Expenditure model.
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You are in the market for a used car. At a used car lot, you know that the blue book value for the cars you are looking at is between $20,000 and $24,000. If you believe the dealer knows as much about the car as you, how much are you willing to ..
Can you select one positive and one negative example of events in your area, state, country or the world that might impact our life, careers or professions.
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Assume the government increases education spending by $20 billion. How much additional consumption will this increase cause?
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Illustrate what two kinds of changes in the capital stock can improve labor productivity. What determines the slope of the per-worker production function.
Give an example of a positive externality and of a negative externality. How does an externality affect the market outcome.
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