Related to the Economics in Practice on page 306: Almost 90 percent of advertisements seen in movie theaters are produced and sold by two firms, National CineMedia and Screenvision. Assume that National CineMedia is responsible for 70 percent of the advertising, Screenvision is responsible for 20 percent of the advertising, and the other 10 percent is produced by one other firm. Based on these numbers, the HHI in this industry would be
A. 100.
B. 4,900.
C. 5,400.
D. 8,200.
Answer: C
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A British investor buys $40,000 worth of stocks in the U.S. stock market. For the U.S. we would predict ________.
A. the balance of trade will increase B. the balance of trade will decrease C. the effect on the balance of trade will depend on how the capital account changes D. the balance of trade will not change
Using the scenario above what might the instructor do to avoid this same result?
What will be an ideal response?
The use of bar codes, computerized price lists, and scanners in supermarkets is an example of
A) menu costs. B) implicit contracts. C) efficiency pricing. D) All of the above.
Between 1860 and 1920, the number of mouths fed per farmer
a. decreased by about 10 percent. b. initially decreased, but then returned to its former level and remained there. c. increased by about 50 percent. d. nearly doubled.