If an industry has a Herfindahl index of 3,000, the contestable market model probably would predict that the industry would be more likely to have a:
A. competitive price.
B. monopolistic price if there are no barriers to entry.
C. competitive price if there are no barriers to entry.
D. monopolistic price.
Answer: C
You might also like to view...
When the dollar depreciates,
A) exports will increase and U.S. consumers benefit. B) imports will increase and U.S. consumers benefit. C) exports will decrease and U.S. exporters benefit. D) exports will increase and U.S. exporters gain.
In the prisoner's dilemma setting for producing and stealing, a tax imposed on participants could end up changing the payoff matrix so that
A) one participant is better off, and one participant is worse off. B) both participants are worse off. C) both participants are better off. D) all of the above are possible
The GDP is the:
What will be an ideal response?
"Regulatory capture" refers to the situation where a government agency charged with supervising and regulating a particular industry is:
A. Strongly influenced by the firms in that industry B. Headed by bureaucrats who have a "lock" on their positions, without any rivals C. Completely dominating the actions of firms in the industry D. Headed by unelected government officials