Answer the following statement true (T) or false (F)
1) Two industries that have the same four-firm concentration ratio can have significantly different
Herfindahl indexes.
2) As it relates to oligopoly, game theory focuses on the strategic behavior of rival firms.
3) The highest possible value of the Herfindahl index is 1,000.
4) The U.S. breakfast cereal industry is an example of differentiated oligopoly.
5) The U.S. steel industry is an example of homogeneous oligopoly.
1) T
2) T
3) F
4) T
5) T
You might also like to view...
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
When a market is in equilibrium:
A. both excess demand and excess supply are positive. B. there is neither excess demand nor excess supply. C. both excess demand and excess supply are positive and equal to each other. D. there is either excess demand or excess supply.