Suppose the Herfindahl indexes for industries A, B, and C are 1,200, 5,000, and 7,500 respectively. These data imply that:
A. market power is greatest in industry A.
B. market power is greatest in industry B.
C. market power is greatest in industry C.
D. industry A is more monopolistic than industry C.
Answer: C
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. In a contestable market with room for many firms, industry output will be the same as in a successful cartel. 2. The Cournot oligopoly model is based on the assumption that firms treat their rivals' output as fixed and given. 3. Firms' total output is higher in the Cournot oligopoly model than in the Bertrand oligopoly model. 4. In both competition and monopolistic competition, free entry and exit guarantee that the industry's output is produced at the least possible cost. 5. Social welfare would be increased if a monopolistically competitive industry were replaced with a competitive industry.
Which of the following statements is true?
A) Both nominal and real interest rates are procyclical and leading. B) Both nominal and real interest rates are procyclical and lagging. C) Nominal interest rates are procyclical and real interest rates are countercyclical. D) Nominal interest rates are procyclical and real interest rates are acyclical.
Low risk stocks are usually accompanied by
a. low returns b. no returns c. high returns d. no sales-no one would buy low risk stocks
A Keynesian economist would propose strong actions to prevent or reduce inflation
a. True b. False Indicate whether the statement is true or false