An industry consists of five firms with annual sales of $1,300, $500, $400, $100, and $600. What is the industry's HHI?
A. 10,000
B. 2,937
C. 5,654
D. There is not sufficient information to compute the industry HHI.
Answer: B
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A decrease in money supply will lead to ________ if nominal wages are fixed
A) lower unemployment B) higher real wages C) higher output D) lower real wages
A person who is risk-neutral will
A) pay a small risk premium when making a choice. B) pick a slightly less risky option with a slightly lower expected value. C) pick the option with the highest expected value. D) None of the above.
Barriers to entry do not occur when:
a. economies of scale in production exist in an industry. b. firms requires a professional license or franchise agreement. c. the firm that introduces a product is granted a patent. d. a firm controls a scarce resource. e. diseconomies of scale in production exist in an industry.
The textile industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that these conditions will
a. shift the demand curve outward so that price will rise to the level of production cost. b. cause the remaining firms to collude so that they can produce more efficiently. c. cause the market supply to decline and the price of textiles to rise. d. cause firms in the textile industry to suffer long-run economic losses.