Assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl index for this industry is:
A. 2,000.
B. 1,600.
C. 2,200.
D. 80.
Answer: C
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a. Nations achieve high rates of economic growth primarily because of their natural resource endowments. b. Human and physical capital investments are largely irrelevant to economic growth. c. Poor nations grow slowly because they do not have access to modern technology. d. A favorable political environment attracts more investment in human and physical capital.
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