Consider an industry that is made up of six firms with the following market shares: Firm A - 50%, Firm B - 20%, Firms C and D - 10% each, and Firms E and F - 5% each. What is the value of the Herfindahl-Hirschman Index?
A) 2,500
B) 3,150
C) 8,100
D) 10,000
Answer: B
You might also like to view...
The best guess has turnover unemployment about ________ as mismatch unemployment
A) three times as large B) twice as large C) the same size D) two-thirds as large E) half as large
Which of the following should be expected if the tax for a certain good increases?
A. price of the good increases. B. the composition of the commodity bundle is distorted. C. the budget line pivots out. D. the composition of the commodity bundle is distorted and the price of the good increases.
Suppose the market demand curve is P = 40 - 2Q and the constant marginal cost of production is MC = 20. Which of the following is a valid expression for the collusion curve?
A) Q = 5 B) Q1 = 5 - Q2 C) Q1 = Q2 = 5 D) Q1 = 40 - Q2
Refer to Figure d, which illustrates a game played by Travis and Darren. For Darren, East is:
A. the best response.
B. the dominant strategy.
C. weakly dominated.
D. dominated.