The difference between a concentration ratio and the Herfindahl-Hirschman Index (HHI) as measures of market concentration is that:
A) the concentration ratio captures the degree of monopoly power while the HHI captures the level of advertising for the firms.
B) the concentration ratio places heavier weight on larger firms in the industry.
C) the concentration ratio does not distinguish between an industry with several equal sized firms and an industry with one large dominant firm.
D) the HHI cannot capture the existence of a monopolist.
E) all of the above are true.
Correct Answer:
Verified
Q10: High concentration in most individual industries is:
A)desirable
Q11: Collusive oligopoly produces prices and quantities very
Q12: A concentration ratio measures:
A)the number of firms
Q13: Use the following to answer questions :
Table
Q14: Since few firms are able to develop
Q16: The term "strategic interaction" refers to:
A)the link
Q17: Use the following to answer questions :
Figure
Q18: Oligopoly is a market situation with:
A)the consumers'
Q19: The four-firm concentration ratio measures:
A)how many industries
Q20: When economists urge the federal government to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents