When the relevant markets are local, the concentration and HHI based on figures for the entire United States tend to:
A. ignore the presence of import goods.
B. give a more precise description of the real situation.
C. be biased downward.
D. be biased upward.
Answer: C
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Which type of cost is does not change as the quantity of output produced changes?
A) total cost B) average cost C) fixed cost D) marginal cost
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The government revenue raised by the tax is:
A. $944,444. B. $2.67 million. C. $1.83 million. D. $4.50 million.
Differentiate between “off-budget” deficit and the “on-budget” deficit.
What will be an ideal response?
Entry into a market characterized by monopolistic competition
A. Is frequent because barriers to entry are low. B. Occurs when a firm's demand is everywhere below its long-run average cost curve. C. Is rare because firms have market power. D. Results from economies of scale.