Exam 10: Organizing Production

Which of the following costs are part of a firm's opportunity costs? I. costs for resources bought in markets II) costs for resources the firm owns III) costs for resources supplied by the owner

Which of the following is a correct statement?

-The table below shows four alternative techniques for assembling a car. The cost of labor is $20 per hour, and the cost of capital is $10 per hour. Which of the four techniques for assembling a car is not technologically efficient?

-FasterChip, Inc. is considering five alternative techniques for assembling personal computers. The table shows the amounts of labor and capital required by each of these techniques to make 10 computers a day. Labor costs $15 an hour and capital costs $100 a unit. a) Which techniques are technologically efficient and which are not? Explain your answer. b) Which technique is economically efficient? Explain. c) If FasterChip uses its plant in Mexico, it can lower the labor cost to $10 an hour. Which technique will the company use in Mexico? Explain.

An advantage of the corporate form of organization is that

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. What is the four-firm concentration ratio in Eatsweetland's cookie industry?

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would

In the personal computer (PC) market in the first half of 2008, Hewlett-Packard maintained its worldwide No. 1 ranking at a market share of 19.1 percent. Dell's market share was 16 percent and Acer held onto third place with a 9.5 percent share, and Lenovo maintained fourth place, with a 7.9 percent share. What is the four-firm concentration ratio in the PC market?

-The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration ratio tells us that

Which type of firm produces the largest share of manufacturing output?

-An industry has only four firms, who have market shares of 45 percent, 25 percent, 20 percent, and 10 percent. What is the Herfindahl-Hirschman Index?

The main disadvantage to organizing a business as a proprietorship is

________ coordinate economic activity in which there are substantial ________.

Which of the following indicates a high degree of competition?

High concentration measures will understate the extent of competition in a market if

A firm finds that it can produce several different goods at a lower average cost by using some of the same production facilities than it could if it produced each of the goods with separate production facilities. This firm is

In their calculation, concentration ratios take barriers to entry into a market into consideration.

A chief purpose of long-term contracts is to improve agents'

-If an industry were perfectly competitive, the four-firm concentration ratio would be close to ________ and the Herfindahl-Hirschman index would be close to ________.

Although a corporation is the most common type of firm, corporations generate only a small share of business revenue in the U.S. economy.