There are 9 firms in an industry with market shares in the table above. Calculate the HHI for the industry. What kind of market does this operate in and why?
What will be an ideal response?
The HHI equals 202 + 202 + 152 + 102 + 102 + 82 + 72 + 52 + 52 = 1388. With this HHI, the concentration ratio is low and so the market is monopolistic competition.
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Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550Suppose the government decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A. $36 per ton B. $21 per ton C. $26 per ton D. $41 per ton
The circular-flow diagram illustrates that:
A) production generates income so that income and production are the same. B) the economy's income is less than its production. C) the economy's income is exceeds its production. D) none of the above are necessarily correct.
Decisions about what to buy and what to sell in the United States are determined primarily by which of the following?
a. Laws of supply and demand b. Projected business profit c. Market price d. Demand curve.
The largest spender on research and development in the world (in total dollars or dollar equivalents) is
A. the United States. B. Japan. C. China. D. the United Kingdom.