Industry A has four firms. The largest firm in Industry A has more than 90 percent of the market share. Industry B also has four firms, but each of those four firms in Industry B has 25 percent of the market share. The Herfindahl-Hirschman index will be
A) the same for both industries, but the four-firm concentration will be larger for Industry B than Industry A.
B) the same for both industries, but the four-firm concentration will be larger for Industry A than Industry B.
C) larger for Industry B than Industry A, but the four-firm concentration will be the same.
D) larger for Industry A than Industry B, but the four-firm concentration will be the same.
Answer: D
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Refer to the above figure. A movement from point A to point B indicates
A) an increase in demand. B) a decrease in demand. C) an increase in quantity demanded. D) a decrease in quantity demanded.
Refer to the above figure. Profits will be positive
A) when the price equals $1. B) when the price equals $2. C) at prices between $1 and $2. D) when the price is above $2.
If P equals $10, Q equals 2 million, and M equal $4 million, what is the velocity of money?
a. 5 b. $800,000 c. $6 million d. $204 million
According to the quantity theory of money, if the money supply is growing at a rate of 5 percent, real GDP is growing at a rate of 2 percent, and velocity is constant, what will the inflation rate be?
What will be an ideal response?