If an industry consists of five firms each with a 20 percent market share, then the Herfindahl-Hirschman index would equal 1,600.
Answer the following statement true (T) or false (F)
False
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Which of the following is true of long-run equilibrium price in a monopolistically competitive market?
A) It is equal to average total cost. B) It is less than average total cost. C) It is higher than average total cost. D) It is lower than marginal cost.
Refer to the above figure. As more and more firms are able to and actually do enter the industry, the demand curve of each firm and its marginal revenue curve
A) will shift inward until the demand curve is tangent to the average total cost curve. B) will become vertical. C) will become upward sloping. D) None of the above will occur.
What was the result of the Bretton Woods Conference?
(A) The creation of a fixed exchange-rate system for the United States and much of Western Europe. (B) The creation of NAFTA. (C) The creation of a flexible exchange-rate system for the United States and much of Western Europe. (D) The creation of the euro.
When the government imposes a tax on a firm that generates external costs, the tax is
A. always borne entirely by the firm. B. always borne entirely by the consumer. C. borne only by the government. D. usually borne by both the firm and the consumer.