Question

6. In industrial analysis, R and D is one of the company's variables in (a) structure, (b) conduct, (c) performance, (d) environment, (e) nothing is true.

7. It is known that the demand function of an industry is Qd = 500 - 2P. When the market price in the industry is $ 50 per unit, what is the total demand? If it is assumed in industry there are 4 companies with the same market share, then how big is the IHH?

(a) Requests for 225 units and IHH of 1600

(b) Requests for 400 units and IHH of 2500

(c) Requests for 225 units and IHH of 3333.33

(d) Request for 400 units and IHH of 10000

(e) Demand of 400 units and IHH is 0 because of the market share of each

Each company is 0.

8. Suppose that the market for goods X has a CR-4 of 0.75. Assume that the industry's total sales are $ 2 million. Based on the information available, we know that the sales size of the 4 largest companies is (a) $ 1 500 000, (b) $ 1 050 000, (c) $ 500 000, (d) $ 750 000 and (e) All wrong answers.

9. Suppose that the monopolist has an inverse curve of demand for the product it produces P = 200 - 5Q. Based on this information, the marginal revenue function is

(a) MR (Q) = 400 - 2.5Q, (b) MR (Q) = 400 - 10Q, (c) MR (Q) = 200 - 5Q, (d) MR (Q) = 200 - 2.5Q, (e) There is no right answer.

10. Suppose that in a perfectly competitive market, the demand function and supply function are respectively P = 100 - 5Q and P = 10 + 5Q. Based on this information, the individual demand curve faced by a company operating in this market is (a) P = 100 - 5Q, (b) horizontal line of $ 9, (c) horizontal line of $ 55, (d) P / N = (100 - 5Q) / N, where N is the total number of companies operating in the perfect competition market, (e) There is no right answer.

Answer 1

6. In industrial analysis, R and D is one of the company's variables in

c) Performance,

7. Qd = 500 – 2P

When P = $50 , Qd = 500 - 2×50 = 400 unit.

If 4 there are 4 companies in the market with the same market share, then the market share of each company is 25 percent.

Thus HHI = 4 × (25)² = 4×625 = 2500

The answer is (b) Requests for 400 units and IHH of 2500

8. CR-4 =0.75, Total sales = $2million

Therefore, the market share for 4 largest company = $2 × 0.75

                                                                                 = $ 1.5million

                                                                                 =$1500 000

Answer is option (a)

9. P = 200 - 5Q

Total revenue = PQ = 200Q – 5Q²

Marginal Revenue = d(TR) / dQ = 200 – 10Q

Answer is option (e) there is no right answer.

10. Equating market demand with market supply, we get

100-5Q = 10 +5Q i.e Q = 9

When Q = 9, P = 100 – 5 × 9 = $55

In perfectly competitive market the individual demand curve is the Average revenue curve which is equal to the price and parallel to the horizontal axis.

Therefore the answer is option C. horizontal line of $55.