If the four firms in an industry represented 40%, 30%, 20%, and 10% of the market, respectively, what would be the Herfindahl-Hirschman Index for this industry? What if the largest firm then divested into two equal sized companies?
a. 3,000 . 2,300.
b. 2,300; 3,000
c. 3,000 . 5,400
d. 2,300; 5,400
a
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When the demand curve shifts rightward and the market moves to a new equilibrium, then the
A) quantity supplied increases. B) supply decreases. C) quantity supplied decreases. D) supply increases. E) price falls to restore the equilibrium.
If a firm doesn't make an economic profit it will shut down
Indicate whether the statement is true or false
Economists need to develop abstractions in order to: a. avoid analyzing real-world economic interactions, which are too complicated to understand. b. distinguish normative economic behavior from positive economic behavior
c. avoid committing the fallacy of composition. d. understand and explain economic behavior.
Refer to Figure 13-18. Which of the following statements is true?
A) Da represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while Db depicts the long-run demand curve in an increasing-cost industry.
B) Da represents the long-run supply curve in a perfectly competitive, constant-cost industry while Db depicts the long-run demand curve facing a monopolistic competitor in a decreasing-cost industry.
C) Da represents the long-run demand curve facing a perfect competitor while Db depicts the long-run demand curve facing a monopolistic competitor.
D) Da represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while Db depicts the demand curve in the short run.