An industry consists of six firms with annual sales of $300, $500, $400, $700, $600, and $600. According to the general rule of thumb, the HHI of this industry implies that the market structure is:
A. noncompetitive.
B. monopoly.
C. noninclusive.
D. competitive.
Answer: A
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The best example of an oligopolistic industry in the United States is
a. gas stations. b. grocery stores. c. automobile production. d. farming.
During the short-run period of the production process, a firm will be:
a. unable to vary any of its factors of production. b. able to vary some of its factors of production. c. able to vary all of its factors of production. d. able to vary the size of its plant.
An important type of information asymmetry is:
A. ethical constraint. B. advantage imbalance. C. information withholding. D. moral hazard.
Suppose an airline company has several empty seats on a flight and the full price of an air ticket is $500 while the marginal cost per passenger is $100. The flight leaves in one hour. Which of the following actions will be the best profitable way to to ensure the remaining seats are sold?
What will be an ideal response?