If there are four firms in an industry and each has a 25 percent market share, then the Herfindahl-Hirschman Index equals
A. 2,500.
B. 2,800.
C. 5,000.
D. 6,600.
Answer: A
You might also like to view...
GDP is best defined as the ________ in a given time period
A) number of final goods and services produced within a country B) market value of the final goods and services produced within a country C) market value of the final goods and services consumed by a nation's citizens D) number of goods and services produced within a country E) market value of all the goods and services produced within a country
Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the value of marginal product from hiring the fourth worker?
A) $2,400 B) $840 C) $120 D) $60
The product diversity resulting from monopolistic competition comes at the expense of having:
a. firms that will earn positive profits. b. firms that are too small to maximize profit. c. higher profit than would prevail under perfect competition. d. efficiency in the long run
The short-run average variable cost curve eventually begins to increase at an increasing rate because of
A. diminishing returns phenomena. B. a constraint that does not allow the firm to change its production technology. C. increasing returns to scale to capital. D. diseconomies of scale.