If more firms enter a market that initially had 20 firms in it, then the Herfindahl-Hirschman Index will ________
A) increase
B) decrease
C) not change
D) change in an unpredictable direction
A
You might also like to view...
Refer to the figure below. A decrease in demand is represented by a shift from: 
A. curve B to curve A. B. curve C to curve D. C. curve A to curve B. D. curve D to curve C.
"Tariffs are necessary for reasons of national security." Discuss the validity of this statement
Because of price controls in the former Soviet Union, people often waited in long lines for food and other necessities. Modern economic theory would indicate that, relative to price rationing, waiting in line is
a. just as efficient. b. less efficient because the time spent waiting in line imposes an opportunity cost on the buyer that does not generate revenue for the seller. c. more efficient since waiting in line reduces the transaction costs of purchasing goods. d. more efficient since waiting in line reduces the cost of the goods to the consumer.
If the demand curve for product B shifts to the right as the price of product A declines, then:
A. both A and B are inferior goods. B. A is a superior good and B is an inferior good. C. A is an inferior good and B is a superior good. D. A and B are complementary goods.