Consider a market characterized by two firms that set the same price in the market, P = $10. Total market demand is QT = 100 ? 2P, of which the two firms share equally. Based on this information, we can conclude:
A. the HHI = 2,500 and the Rothschild index is 2.
B. the HHI = 5,000 and the Rothschild index is 1.
C. the HHI = 5,000 and the Rothschild index is 2.
D. None of the answers are correct.
Answer: B
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How does the U.S. federal government assist workers who have lost their jobs due to international trade?
What will be an ideal response?
Which of the following statements is false?
A. Government can remove individuals from a prisoner's dilemma setting and make them better off. B. In a prisoner's dilemma setting, it is impossible for the government to define and enforce property rights that the individuals involved in the setting want to have defined and enforced. C. As long as government charges each individual in a prisoner's dilemma setting a tax that is less than the gain received by being removed from the setting, then government has made the individuals better off. D. Depending upon the amount of the tax charged to each individual in a prisoner's dilemma setting, the government can make both persons better off, both persons worse off, or one person better off and the other person worse off.
The best combination of inputs at one level of production may not be best at other levels.
a. true b. false
For this question, assume that the domestic interest rate is 6% and that the foreign interest rate 4%. And finally, assume that the domestic currency is expected to appreciate by 3% during the coming year. Given this information, we know that
A) individuals will only hold domestic bonds. B) individuals will only hold foreign bonds. C) individuals will be indifferent about holding domestic or foreign bonds. D) the interest parity condition holds.