Wanda owns a desktop publishing company. Wanda can purchase a computer for $5,000 or rent it for $600 a year. Wanda buys the computer and pays an implicit rental rate of _____________ a year.

zero
$5,600
$600
$5,000

Flora's Flower Shop bought a new van for $16,000. Today, the market price of this van is $7,000. Over the years, Flora's accountant has depreciated the van by $10,000. The economic depreciation of the van is ___________.

$10,000
$16,000
$9,000
$7,000

The table shows four methods for producing 25 zobs a day. Of the four methods, ____________ technologically inefficient.

A and B are
D is
B is
A and C are

The table shows four methods for producing 25 zobs a day. If the cost of a worker is $10 a day and the cost of capital is $10 a day, the economically efficient method of producing zobs is ___________.

B
B, C, or D
A
C

The table shows four methods for producing 25 zobs a day. If the cost of a worker is $5 a day and the cost of capital is $10 a day, the economically efficient method of producing zobs is _________.

A
A or C
D
B

Greg and Todd form a partnership and start a business in which each has a 50 percent share of the profit. After a year, the firm goes bankrupt and has debts of $20,000. Greg has no money, but Todd has $25,000 in the bank. Todd must pay ___________ of debt.

$10,000
$25,000
$20,000
$0 because in a partnership each partner must pay the same

Martha and Wendy start a cookie shop and the business is organized as a corporation. Because of poor planning the business goes bankrupt and the corporation's debt is $30,000. Martha has no wealth, but Wendy has $50,000 in savings. Martha has to pay _________ of the debt and Wendy has to pay __________ of the debt.

$15,000; $15,000
$0; $15,000
$0; $0
$0; $30,000

If 5 firms share the sales of the market equally, the four-firm concentration ratio is _______.

100
4
80
5

The following table gives the market share of sales of firms in the retail clothing market in the economy of Thomas. What is the four-firm concentration ratio?

not enough information to calculate
65 percent
70 percent
100 percent

In an oligopoly with two firms, one firm's share of the market is 70 percent. The Herfindahl-Hirschman Index is ______________.

100
5,800
0.7
4,900

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