The above table shows the market shares for all the landscaping services in a suburban area. A merger between the three largest firms would
A) make the industry more competitive.
B) increase the four-firm concentration ratio and increase the Herfindahl-Hirschman Index (HHI).
C) increase the four-firm concentration ratio and decrease the Herfindahl-Hirschman Index (HHI).
D) decrease the four-firm concentration ratio and decrease the Herfindahl-Hirschman Index (HHI).
B
You might also like to view...
The relationship between the level of saving and the level of consumption is called the savings function
Indicate whether the statement is true or false
One way to deal with the efficiency problem of monopolies is to tax the profits of monopolists.
Answer the following statement true (T) or false (F)
In the Monetarist model, the long-run holds when
a. the money supply is constant. b. real wages are constant. c. output is constant. d. the expected price level equals the actual price level. e. none of the above.
The labor supply curve faced by an individual firm in a perfectly competitive market is
A) upward sloping. B) horizontal. C) vertical. D) downward sloping.