ECON 5313 - FINAL QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY GRADED A+
Which of the following integration types exploits economies of scope?
Ans✓✓✓horizontal integration
Which of the following are measures of industry concentration?
Ans✓✓✓Four-firm concentration ratio and HHI index
The HHI of a local market is usually ________ that of national markets.
Ans✓✓✓higher than
Which of the following forms of payment is NOT an incentive plan?
Ans✓✓✓Flat salary for a plant manager
A frozen food company buys a fresh food company. This takeover is an
example of: Ans✓✓✓horizontal integration
In order for spot checks to be effective, they must be: Ans✓✓✓random
in nature
Which of the following may transform an industry from oligopoly to
monopolistic competition? Ans✓✓✓entry
An electronics company takes over one of its original suppliers in a
merger. This is an example of: Ans✓✓✓vertical integration
, When the relevant markets are local, the concentration and HHI based
on figures for the entire United States tend to: Ans✓✓✓be biased
downward
The ranking of industries by the four-firm concentration ratio usually,
but not always, reveals the same pattern as ranking by HHI. When a
discrepancy is found it is usually due to the following: Ans✓✓✓The
four-firm concentration index contains data on only the largest four
firms, while the HHI is based on data for all firms in the industry and the
HHI is based on squared market shares, while the four-firm
concentration ratio is not.
An example of a job that usually involves a revenue-sharing plan would
be: Ans✓✓✓waiters and waitresses, insurance agents, and car salesmen
Suppose each of the 50 states had only one gasoline station, and all
stations were the same size. The four-firm concentration ratio for the
state of New York, based on the state data, is: Ans✓✓✓1.0
A firm might choose to produce its own inputs if: Ans✓✓✓long-term
contracts are costly to write.
An unregulated industry has a Lerner index of zero. These numbers:
Ans✓✓✓are consistent with the industry being perfectly competitive.
ANSWERS (VERIFIED ANSWERS) ALREADY GRADED A+
Which of the following integration types exploits economies of scope?
Ans✓✓✓horizontal integration
Which of the following are measures of industry concentration?
Ans✓✓✓Four-firm concentration ratio and HHI index
The HHI of a local market is usually ________ that of national markets.
Ans✓✓✓higher than
Which of the following forms of payment is NOT an incentive plan?
Ans✓✓✓Flat salary for a plant manager
A frozen food company buys a fresh food company. This takeover is an
example of: Ans✓✓✓horizontal integration
In order for spot checks to be effective, they must be: Ans✓✓✓random
in nature
Which of the following may transform an industry from oligopoly to
monopolistic competition? Ans✓✓✓entry
An electronics company takes over one of its original suppliers in a
merger. This is an example of: Ans✓✓✓vertical integration
, When the relevant markets are local, the concentration and HHI based
on figures for the entire United States tend to: Ans✓✓✓be biased
downward
The ranking of industries by the four-firm concentration ratio usually,
but not always, reveals the same pattern as ranking by HHI. When a
discrepancy is found it is usually due to the following: Ans✓✓✓The
four-firm concentration index contains data on only the largest four
firms, while the HHI is based on data for all firms in the industry and the
HHI is based on squared market shares, while the four-firm
concentration ratio is not.
An example of a job that usually involves a revenue-sharing plan would
be: Ans✓✓✓waiters and waitresses, insurance agents, and car salesmen
Suppose each of the 50 states had only one gasoline station, and all
stations were the same size. The four-firm concentration ratio for the
state of New York, based on the state data, is: Ans✓✓✓1.0
A firm might choose to produce its own inputs if: Ans✓✓✓long-term
contracts are costly to write.
An unregulated industry has a Lerner index of zero. These numbers:
Ans✓✓✓are consistent with the industry being perfectly competitive.
