The text states that the Herfindahl-Hirschman Index (HHI) for electronic computers is 680, while the HHI for chocolate is 2,188 . We can interpret this to mean that
a. people buy more chocolate than computers
b. the price of computers is higher than the price of chocolate
c. the demand for computers is relatively more inelastic than the demand for chocolate
d. market power is more heavily concentrated in the chocolate market than in the computer market
e. computers are more of a necessity than chocolate
D
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At full employment,
A) the inflation rate is zero. B) the inflation rate must equal the natural unemployment rate. C) the unemployment rate is zero. D) real GDP exceeds potential GDP. E) the unemployment rate is equal to the natural unemployment rate.
Efforts by a firm to obtain a monopoly
A) are called price discrimination. B) increase consumer surplus. C) are called rent seeking. D) are called price taking.
If the price of one input changes, the firm will change its use of that input only
a. True b. False Indicate whether the statement is true or false
All of the following could shift the demand curve except
A. a change in the price of substitutes. B. a shift of the supply curve. C. a rise in income. D. a rise in population that buys the good.