Exam 10: Organizing Production

Use the information below to answer the following questions. Fact 10.1.1 The Colvin Interview: Chrysler The key driver of profitability will be that the focus of the company isn't on profitability. Our focus is on the customer. If we can find a way to give customers what they want better than anybody else, then what can stop us? Source: Fortune, April 14, 2008 -Refer to Fact 10.1.1.If Chrysler doesn't focus on maximizing profit, but instead focuses their production and pricing decisions to "give customers what they want", Chrysler would

The four-firm concentration ratio measures the share of the largest four firms in total industry

Normal profit is the ________.Normal profit ________ part of a firm's opportunity cost.

One difference between oligopoly and monopolistic competition is

Emma owns a firm that produces umbrellas.Currently, Emma produces 2,500 umbrellas a day.Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers.Emma is ________ efficient.

Which one of the following statements is not true?

A four-firm concentration ratio that exceeds 60 percent indicates

All of the following statements are correct except

The possibility that an employee may not work hard is an example of the

Which one of the following is included in the implicit rental rate of capital?

Susan invests $1,000 to buy shares of TooNew stock.The company declares bankruptcy, leaving many debts unpaid, including Susan's $1,000 investment.Susan has a personal net worth of $50,000.What will be Susan's final net worth if TooNew has total unpaid debts of $30,000?

The implicit rental rate to a firm of owning a building is

Use the information below to answer the following questions. Fact 10.2.1 Consider the following three methods of preparing your tax return. Method A uses a personal computer (cost equal to $1,000)and 1 hour of your time. Method B uses a calculator (cost equal to $30)and 12 hours of your time. Method C uses pen and paper (cost equal to $1)and 2 days (16 hours)of your time. -Consider Fact 10.2.1.Which production method is technologically inefficient?

When the cost of producing a unit of a good falls as its output rate increases,

It is a disadvantage of ________ that retained profits are taxed twice. It is a disadvantage of ________ that bad decisions are not checked by the need for consensus.

The purpose of calculating the concentration ratio is

Use the table below to answer the following questions. Table 10.4.1 -Refer to Table 10.4.1.The four-firm concentration ratio for taco stands is

The Herfindahl-Hirschman Index (HHI)is the square of the percentage market share of each firm summed over the ________ firms in a market.

Use the table below to answer the following questions. Table 10.2.2 Three methods of making one medical hologram -Refer to Table 10.2.2.If the price of labour is $20 per unit and the price of capital is $10 per unit, which method is economically efficient?

Which of the following industries in Canada has the lowest four-firm concentration ratio?