The Herfindahl Hirschmann Index (HHI) is a popular measure of competitor size inequality that reflects size differences among large and small firms.Which of the following is true?
A) HHI approaches zero for industries characterized by a large number of very small competitors.
B) Calculated in percentage terms, the HHI is the sum of the market shares for all n industry competitors.
C) A monopoly industry with a single dominant firm is described by a HHI = 100.
D) A vigorously competitive industry where each of the leading four firms enjoy market shares of 25% is described by a HHI = 100.
Correct Answer:
Verified
Q1: In oligopoly equilibrium:
A)MC = AC.
B)MC < AC.
C)MC
Q2: Firms never face a downward sloping demand
Q3: Monopolistically competitive firms earn a normal profit
Q4: When prices in oligopoly markets exceed those
Q5: In an oligopoly market, firms always:
A)offer products
Q7: For a firm in monopolistically competitive market
Q8: Oligopoly is always characterized by:
A)homogeneous products.
B)barriers to
Q9: If LRAC decline continuously, it is impossible
Q10: In neither monopolistic competition nor oligopoly market
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