A Herfindahl index value of 20, for a particular industry, indicates that the industry is most likely to be:
a. perfectly competitive.
b. highly concentrated.
c. oligopolistic.
d. monopolistic.
e. made up of illegal firms.
a
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Tickets to the Indiana-Purdue basketball game are usually sold out far in advance of game day and many people are disappointed because they cannot see the game. This suggests
a. the price of the tickets must be higher than the equilibrium price because people consider them valuable b. the price is set below the equilibrium level c. the price is set above the equilibrium level d. there is no excess demand or supply e. the people deciding on what price to charge considered only the fixed capacity of the stadium
The sum of consumers' surplus and producers' surplus is maximized at equilibrium
Indicate whether the statement is true or false
What is the price of coffee when the demand is 15 pounds per year?
a. $2 per pound
b. $3 per pound
c. $4 per pound
d. $5 per pound
The economy of Alpha operates according to Okun's law. In Alpha, potential GDP equals $500 billion, actual GDP equals $480 billion, and the natural rate of unemployment is 5 percent. What is the actual rate of unemployment in Alpha?
A. 3 percent B. 7 percent C. 1 percent D. 4 percent