Consider a market characterized by two firms that set the same price in the market, P = $10.Total market demand is QT = 100 - 2P, of which the two firms share equally.Based on this information we can conclude
A) the HHI = 5,000 and the Rothschild index is 1.
B) the HHI = 2,500 and the Rothschild index is 2.
C) the HHI = 5,000 and the Rothschild index is 2.
D) none of the statements associated with this question are correct.
Correct Answer:
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