ECON101 Lecture Notes - Oligopoly, Factors Of Production, Outsourcing

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bluewolf60

1 Dec 2013

School

University of Waterloo

Department

Economics

Course

ECON101

Professor

Wokia Kumase

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ECON101 Full Course Notes

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If you can produce the same amount of output but use less labor or capital(make one constant to analyze),then it is technological inefficient. Then b is technological inefficient,because we can use. 3 less units of labor to produce the same q=100. (compared with e) (i) w y. The total cost: a: 1001 b:805 c:420 d:150. So d is the economic efficient (ii) 50 5. So in this case, a is the economic efficient Measures of concentration (1) the four-firm concentration ratio. The ratio=0 then it is a perfect competitive market. The ratio=100 then it is a monopoly market. 60< ratio <100 it is a oligopoly market (2) the herfindahl-hirschman index(hhi) <1000 -> competitive >1800 -> uncompetitive (nearly monopoly) (3) limitations of a concentration measure (i) the geographical scope of the market (ii) barriers to entry and firm turnover. If there is only one producer in the market, then there is little or no competition.

Related Questions

33) Which one of the following statements is not true? A) A production process is technologically efficient only if it is producing a given output at the lowest possible cost. B) If a process is economically efficient, it must be technologically efficient as well. C) Economic efficiency depends on the relative price of inputs, while technological efficiency does not D) Economically efficient firms will be more likely to survive than economically inefficient firms. E) Technologically efficient firms are more likely to survive than technologically inefficient firms.

37. Which one of the following statements is not true? A) A production process is technologically efficient only if it is producing a given output at the lowest possible cost. B) If a process is economically efficient, it must be technologically efficient as well. C) Economic efficiency depends on the relative price of inputs, while technological efficiency does not. D) Economically efficient firms will be more likely to survive than economically inefficient firms. E) Technologically efficient firms are more likely to survive than technologically inefficient firms.

42) Which one of the following statements is not true? A) A production process is technologically efficient only if it is producing a given output at the lowest possible cost. B) Technologically efficient firms are more likely to survive than technologically inefficient firms. C) Economically efficient firms will be more likely to survive than economically inefficient firms. D) If a process is economically efficient, it must be technologically efficient as well. E) Economic efficiency depends on the relative price of inputs, while technological efficiency does not

ECON101 Lecture Notes - Oligopoly, Factors Of Production, Outsourcing

ECON101 Full Course Notes

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