The above table shows the market shares for all the landscaping services in a suburban area. A merger between the three largest firms would
A) make the industry more competitive.
B) increase the four-firm concentration ratio and increase the Herfindahl-Hirschman Index (HHI).
C) increase the four-firm concentration ratio and decrease the Herfindahl-Hirschman Index (HHI).
D) decrease the four-firm concentration ratio and decrease the Herfindahl-Hirschman Index (HHI).
B
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In a perfectly competitive industry, the demand for a single firm's product is perfectly elastic
A) because this firm's output is a perfect substitute for any other firm's output. B) because this firm is a price maker. C) only in the long run. D) because there are many buyers in this market.
Declines in spending on residential construction are often due to increases in interest rates. The collapse in residential construction prior to and during the recession of 2007-2009 was due more to ________ than to higher interest rates
A) the financial crisis that began in 2007 B) rising wages in the construction industry C) the rapid inflation of the early 2000s D) increases in the price of lumber