An industry has a single firm, and is found to have violated antitrust laws. The government breaks its up into two firms that will share the market equally. The Herfindahl index for this industry would change from:
A. 100 to 50
B. 10000 to 2500
C. 100000 to 50000
D. 10000 to 5000
D. 10000 to 5000
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Capture theory is
A) an economic theory of regulation. B) a model about perfect competition. C) the same as the public interest theory. D) the theory that regulators capture firms' attention by dictating a very low price. E) a theory that explains behavior of competitive firms.
The land of Mordor increases its capital stock. As a result, the long-run aggregate supply curve shifts ________ and so does the ________ curve
A) rightward; aggregate demand B) leftward; aggregate demand C) rightward; short-run aggregate supply D) leftward; short-run aggregate supply
Refer to Figure 11-4. Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from
A) B to A. B) E to B. C) B to C. D) A to C.
In the typical CPI shopping basket, which of the categories below represents the largest percentage of consumer spending?
a. housing b. food & beverages c. transportation d. medical care