Assume the market shares of the six largest firms in an industry are 15 percent each. The six-firm concentration ratio would indicate that the industry is highly concentrated, while the Herfindahl- Hirschman Index would not
Indicate whether the statement is true or false
TRUE
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If the CPI declines from 300 to 270, the price level fell by _____ percent.
Fill in the blank(s) with the appropriate word(s).
Explain the relationship between potential GDP and real GDP in the United States since the early 1960s. You do not need to tell what happened during any specific year; just describe the general relationship
What will be an ideal response?
The time and money spent by a monopoly firm on lobbying for favorable government policies is called
a. the capitalized value of the firm b. limit pricing c. rent-seeking activity d. administered pricing e. implicit cost
A bank wants to get rid of excess reserves by making loans because
a. it will be penalized if it does not get rid of the reserves b. the reserves do not earn interest c. it is afraid it will lose the excess reserves d. firms will not borrow from a bank with excess reserves e. the bank has too many liabilities