Suppose an industry has a four-firm concentration ratio of 20 percent and a Herfindahl index of 600. According to the cartel model, the industry would be more likely to have:

A. a price war.
B. a monopolistic price.
C. either a monopolistic or a competitive price, depending on barriers to entry and exit.
D. a competitive price.


Answer: D

Economics

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Economics

Which of the following statements is true about the U.S. economy?

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Economics

If the MPM is 0.4, then a $2,000 increase in income will

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Economics