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Consider a Market Characterized by Two Firms That Set the Same

Question 97

Multiple Choice

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 answers are correct.

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