One measure of the extent of competition in an industry is the concentration ratio. What level of concentration indicatesthat an industry is an oligopoly?Most economists believe that a four-firm concentration ratio ofoligopoly. (Enter your response as an integer.)thanpercent indicates that an industry is anIs the concentration ratio an accurate measure of the extent of competition?The four-firm concentration ratioOA. is flawed in that it includes sales in the U.S. by foreign firms.B. is flawed in that it includes competition between industries.C. is accurate because it is based on national and global competition.D. is accurate because it is based on estimates from the U.S. Census Bureau.OE. is flawed in that it is calculated for the nation market even though competition in some industries is local.

Most economics believe that a four-firm concentration ratio of greater than 60 percent indicates…

Answered: One measure of the extent of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells 8,000 shares at $16 per share. Required: Record the sale of the common stock, given the following independent assumptions: 1. The stock has a par value of $10 per share.
M18.
Which of the following does ratio analysis in an industry set-up help compare? (Note: More than one option(s) may be correct.) ans1:A company's performance between different time period ans2:A company's performance to another ans3:A company to industry standard ans4:None of the above
Which of the following create value in an industry? (Select all that apply.) When value capture increases O When aggregate production in an industry increases. When a firm exits an industry When the industry demand curve shifts outward When a firm enters an industry with an undifferentiated product
6. Assume that Consumption is C = c(1 t)Y; Investment I = I - bi; Net Exports NX = x₁YW + x₂Rm₁Y+ m₂R and Government expenditure (G) is exogenous. Which factors make the Aggregate Expenditure line flatter and which factors determine its vertical intercept?
Bradley plc operates in the electronics industry. It has found that the prices being charged by its suppliers are increasing in line with inflation in the wider economy. An external consultant has been asked to outline for Bradley plc’s board the types and causes of inflation, and has made the following statementsDemand pull inflation arises from a persistent excess of supply in the economy as a wholeCost push inflation may arise from wage increasesWhat is the validity of the external consultant’s statements?A. Both statements are falseB. Only the first statement is trueC. Only the second statement is trueD. Both statements are true
Which is not a potential problem of utilizing ratio analysis? A. trends and industry averages are historical in nature. B. financial data may be distorted due to price-level changes. C. firms within an industry may not use similar accounting methods. D. all of the above E. answer not given
A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is retaliation pricing. price leadership. "follow the leader" pricing. "tit-for-tat" pricing.
The spread is a function of a variety of factors. You can think of the spread as a function of these factors. For example: Spread = f(Order Costs, Inventory Costs, Competition, Volume, Currency Risk) All else equal, if the volume increases then the spread will most likely increase
As consultants in advisory services, we are hired by Sayko Corp to help analyze its regional operations in the contiguous U.S. Sayko wishes to draw on our expertise in financial statement analysis to help identify further expansion of operations. Please complete the following based on the information on the map (image): 1. Compute profit margin for each region.2. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of sales. If we use profit margin to guide our recommendation, which region do we suggest?3. Compute return on total assets for each region.4. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of assets invested. If we use return on total assets to make our decision, which region do we recommend?
Which of the following best describes the following financial ratio analysis limitation: firms operate in different industries and is difficult to find a meaningful set of industry-average ratios.Question 14 options: 1) Window dressing 2) Many different divisions 3) Inflation 4) None of the above options

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