The highest Herfindahl-Hirschman Index
A. is in Industry X.
B. is in Industry Y.
C. is in Industry Z.
D. cannot be determined.
A. is in Industry X.
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If country X has a higher capital per person than country Y, then ________
A) country X is richer than country Y B) the only way for country X to be richer than country Y is if X is just as productive (has the same TFP) as Y C) the only way for country Y to be richer than country X is if Y is more productive (has a higher TFP) than X D) the only way for country X to be richer than country Y is if X is less productive (has a lower TFP) than Y E) none of the above
If government officials break up a natural monopoly into four smaller firms, then
a. each firm will be unable to maximize profits due to increased competition. b. competition will force firms to produce surplus output, which drives up price. c. the average cost of production will increase. d. consumers will benefit from lower average total costs.