What is the Herfindahl-Hirschman Index and what does it measure?
What will be an ideal response?
The Herfindahl-Hirschman Index, or HHI, is an index used to measure the extent to which a market is dominated by a small number of firms. The HHI equals the sum of the squared percentage market shares of each of the 50 largest firms in the market. A monopoly will have a HHI of 10,000 whereas perfect competition will have a small HHI.
Economics
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Which of the following does not apply to a firm that has shut down in the short run?
a. Variable cost is zero. b. Total revenue is zero. c. Total cost exceeds total revenue. d. Total cost is zero. e. Fixed cost is positive.
Economics
Figure 4-21
Refer to . How much tax revenue does this tax produce for the government?
a.
$480
b.
$600
c.
$800
d.
$1,080
Economics