If an industry currently dominated by three large producers whose revenues represent 30%, 30%, and 30% of the market's total revenues, with the remaining two firms each representing 5%, then the two largest firms merged, what would be the new four firm concentration ratio and the new Herfindahl-Hirschman Index for this industry?
a. 95%; 4525
b. 95%; 2,750
c. 100%; 4525
d. 100% 2,750
c
You might also like to view...
Which of the following is part of the economic way of thinking?
a. Opportunity costs will always be incurred when scarce resources are used to produce a good. b. When the cost of an option increases, individuals will be less likely to choose it. c. In addition to their immediate direct effects, economic actions often generate secondary effects that are observable only after the passage of time. d. All of the above are part of the economic way of thinking.
Sam has $500 in traveler's checks. He cashes a $100 traveler check, deposits $150 into his checking account at a Savings and Loan Association, and deposits the remaining $250 into a savings account at a credit union. Immediately, ________.
What will be an ideal response?
The short-run aggregate supply curve is a relationship between
A. capital goods and consumer goods. B. real GDP and price level. C. inflation and time. D. unemployment and real GDP.
In the mainstream view, the economic instability brought about by "oil shocks" works through changes in:
A. Aggregate demand B. Wage and price inflexibility C. Money supply D. Aggregate supply