The 100 largest U.S. firms currently control
a. about half of all manufacturing assets in the United States, which represents a decrease since World War II
b. about half of all manufacturing assets in the United States, which represents an increase since World War II
c. about half of all manufacturing assets in the United States, which represents no change since World War II
d. about 40 percent of all manufacturing assets in the United States, which represents a decrease since World War II
e. about 40 percent of all manufacturing assets in the United States, which represents an increase since World War II
QUESTION 2Allocative efficiency means that
a. firms have maximized production
b. all mutually beneficial trades have taken place
c. the next unit sold will increase total surplus
d. producer surplus is maximized
e. no mutually beneficial trades have occurred
QUESTION 3Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is
a. equally elastic
b. unitary elastic
c. more elastic
d. less elastic
e. not a factor in the cost of airline tickets
QUESTION 4If two large firms from different industries merge,
a. industry concentration rises
b. industry concentration falls
c. the total assets of the top 200 firms in the country will stay the same
d. industry concentration rises in one market and falls in the other
e. industry concentration is not affected
QUESTION 5Allocative efficiency occurs in markets when
a. marginal benefit and marginal cost for the last unit sold are equal
b. resources can be reallocated to increase the value of total output
c. goods are produced at the minimum of average total cost
d. goods are distributed evenly among consumers
e. government establishes price ceilings below the market price
QUESTION 6After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to learn that one benefit of being a monopoly was that her company
a. could charge as high a price as desired
b. was in a good position to capture the fruits of any innovation
c. received increased scrutiny from government regulators
d. started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company
e. contributed to the deadweight loss in the economy
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