The measure of concentration in an industry that takes the sum of the squares of the market shares of each firm in the industry is called _______________.
Fill in the blank(s) with the appropriate word(s).
the Herfindahl-Hirschman Index
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When firms charge different prices to different consumers for the same good or service, it is referred to as ________
A) price bias B) shadow pricing C) predatory pricing D) price discrimination
Which of these is NOT a generally accepted means of reducing risk?
A) Diversification B) Insurance C) Obtaining more information D) none of the above
Len is putting in a new swimming pool. He can either heat his pool with natural gas or with solar power
If he chooses solar power it will cost him more today, but he will recover these costs over the next 7 years in savings on his natural gas bill. The solar heater is expected to last 12 years. Len: A) will put in the solar heater regardless of the discount rate because the savings in natural gas outweigh the initial cost of the solar heater. B) is more likely to install the solar heater as the discount rate increases. C) is more likely to install the solar heater as the discount rate declines. D) will not put in the solar heater unless he is an environmentalist.
Which of the following would be classified as a differentiated product produced by a monopolistic competitor?
a) natural gas b) tap water c) electricity d) Channel No. 5