If an industry is dominated by three large producers whose revenues represent 30%, 30%, and 30% of the market's total revenues with the remaining two firms each representing 5%, what would be the measure of the Herfindahl-Hirschman Index for this industry?
a. 2,725
b. 2,750
c. 9,975
d. 10,000
b
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What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side?
a. Demand-side inflation is short-lived, while supply-side inflation lasts for a long time. b. Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits. c. Supply-side inflation is subject to control of policy makers, while demand-side inflation is beyond their reach. d. Demand-side inflation is normally accompanied by rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
The shift of the budget line from cd to ab in the figure is consistent with:
A. decreases in the prices of both M and N.
B. an increase in the price of M and a decrease in the price of N.
C. a decrease in money income.
D. an increase in money income.
When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long-run aggregate supply curve
A. slopes upward. B. slopes downward. C. is vertical. D. is horizontal.
China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario
A. China should export textiles and import radios. B. Japan should import both radios and textiles. C. China should export both radios and textiles. D. Japan should export textiles and import radios.