Industry X has four firms. The largest firm in Industry X has more than 90 percent of the market share. Industry Y also has four firms, but each of those four firms in Industry Y has 25 percent of the market share
The Herfindahl-Hirschman index will be A) the same for both industries, but the four-firm concentration will be larger for Industry Y than Industry X.
B) the same for both industries, but the four-firm concentration will be larger for Industry X than Industry Y.
C) larger for Industry Y than Industry X, but the four-firm concentration will be the same.
D) larger for Industry X than Industry Y, but the four-firm concentration will be the same.
D
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To an economist, "investment" in the GDP accounts means purchases of new final goods and services by firms
Indicate whether the statement is true or false
Suppose that reducing inflation by 2 percentage points would cost a country 5 percent of its annual output. This country's sacrifice ratio is
a. 0.4. b. 1.5. c. 2.5. d. 5.0.