The largest firm in Industry Q has a 50% market share and the next five firms each has a market share of 10%. The largest firm in Industry R has a 40% market share and the next three firms each has a market share of 20%. Which statement is true?
A. Industry Q has a higher Herfindahl-Hirschman Index than Industry R.
B. Industry R has a higher Herfindahl-Hirschman Index than Industry Q.
C. The HHIs of these industries are equal.
D. None of these statements are true.
A. Industry Q has a higher Herfindahl-Hirschman Index than Industry R.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
A rise in stock prices ________ the net worth of firms and so leads to ________ investment spending because of the reduction in moral hazard
A) raises; higher B) raises; lower C) reduces; higher D) reduces; lower
Describe the circumstances under which a producer of joint products in fixed proportions might not sell all of one of the available joint products at the profit-maximizing level of operations
What will be an ideal response?
If individuals make intertemporal choices using "hyperbolic discounting", this may create inefficient choices because individuals will: a. not take account of their time preferences
b. make choices that are inconsistent over time. c. have a preference for only consuming in the future. d. confuse nominal and real interest rates.