Solved

Girlfriend's Salon Is the Only Hair Salon in Sunnyvale, a Small

Question 35

Multiple Choice

Girlfriend's Salon is the only hair salon in Sunnyvale, a small town. Which of the following statements correctly describes a concentration measure for salons in Sunnyvale?


A) The measure would incorrectly show an uncompetitive market structure because many firms could open in Sunnyvale without any restrictions.
B) The measure would incorrectly show an uncompetitive market because the measure does not reflect the low prices charged at Girlfriend's Salon.
C) The measure would correctly show a monopoly exists because Girlfriend's revenues are low.
D) The measure would incorrectly show a perfectly competitive market exists because new salons can open and compete with Girlfriend's.
E) The measure would correctly show a monopoly exists in town because there are so few residents.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents