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 four firm concentration ratio and the Herfindahl-Hirschman Index for this industry?
a. 95%; 2,725
b. 95%; 2,750
c. 70%; 9,975
d. 70% 10,000
b
You might also like to view...
"Insider trading" laws are meant to prevent
A) the executives of a corporation from holding a majority of its outstanding shares. B) buying or selling shares based on information not available to the public. C) foreign investors from gaining controlling interest in U.S. corporations. D) the issuing of bonds for the purpose of buying stock.
Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, what is the marginal cost of 5th red rubber ball?
A) 4 B) 5 C) 8 D) 20 E) none of the above
Which of the following financial securities is most liquid?
A) a savings account B) a share of stock C) a cashier's check D) a $20 bill
The demand facing a monopolistically competitive firm is ________ a monopolistic firm and ________ a perfectly competitive firm.
A. as elastic as; less elastic than B. less elastic than; more elastic than C. more elastic than; as elastic as D. more elastic than; less elastic than