Industry A has two firms that each control 50 percent of the market. Industry B has three firms, where one firm controls 70 percent of the market and the other two firms control 15 percent of the market each. According to the HHI, which industry is more concentrated?
A. Industry A
B. Industry B
C. Both industries are equally concentrated.
D. indeterminate from the given information.
Answer: B
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According to the book, individuals and families have unique management styles or characteristic ways of making decisions and acting, which of the following is not one of the main factors influencing management styles:
a. History b. Biology c. Culture d. Politics
With trade, countries can consume combinations of goods beyond their production possibilities frontier
a. True b. False Indicate whether the statement is true or false
Why is it difficult for economists to predict the price and output policy that will emerge in oligopolistic markets?
a. Economists cannot determine if barriers to entry exist in a market. b. Economists cannot predict the reactions that firms will have to the actions and decisions of other firms. c. The government prevents economists from acquiring the information that would lead to good predictions. d. Firms have a set price and output policy, but the policy is concealed to discourage competition.
If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of $1 trillion, then saving will
A. increase by $0.5 trillion. B. increase by $1 trillion. C. increase by $1.5 trillion. D. remain unchanged.