Which of the following explains how to use the Herfindahl-Hirschman Index?
a. Summing the squares of the market share of each firm in the industry
b. Calculating each firm’s share of the total sales in the industry
c. Multiplying the squares of the market share of each firm in the industry
d. Dividing each firm’s share of total industry sales by the firm’s sales
a. Summing the squares of the market share of each firm in the industry
The Herfindahl-Hirschman Index involves summing the squares of the market share of each firm in the industry.
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A technological innovation that reduces a firm's marginal cost will lead to:
A. a decrease in the firm's supply. B. an increase in the quantity supplied by the firm, but no change in the firm's supply. C. an increase in the firm's supply. D. a decrease in the quantity supplied by the firm, but no change in the firm's supply.
A marginal tax rate is
A) the fraction of each additional dollar of income that must be paid in taxes. B) the incremental income one must earn to offset each additional dollar of tax. C) the ratio of a change in income to a change in taxes paid. D) the fraction of income that must be paid in taxes.
What causes the market supply curve to shift rightward?
a. Increase in the aggregate demand b. Decrease in the number of existing firms c. Decrease in the price level d. Increase in the cost of production e. Entry of new firms
The demand for labor depends on ________ and ________.
A. the rate of price inflation; the price of the output produced B. the supply of labor; the price of output produced C. the supply of labor; the marginal product of labor D. the marginal product of labor; the price of output produced