Which of the following statements about the Herfindahl-Hirschman Index is CORRECT?
I. It is the square of the percentage market share of each firm summed over the largest 50 firms (or summed over all the firms if there are fewer than 50 ) in a market.
II. A small index is indicative of a high degree of competition.
III. The index is used to measure the degree of competition.
A) I only
B) I, II only
C) I, III only
D) I, II, and III
D
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What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?
a. The labor supply will stay unchanged until the wages paid to pear pickers change. b. The labor supply will decrease. c. The labor supply will increase. d. The labor supply may fall or rise, depending on the price of pears.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher