Suppose that a particular industry has a four-firm concentration ratio of 85 and a Herfindahl index of 3,000. Most likely, this industry would achieve:
A. both productive efficiency and allocative efficiency.
B. allocative efficiency but not productive efficiency.
C. neither productive efficiency nor allocative efficiency.
D. productive efficiency but not allocative efficiency.
Answer: C
Economics
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______________: Using right methods of production
Fill in the blank(s) with the appropriate word(s).
Economics
The MU/P equalization principle means consumers will spend their income (budget) so that the MU/P ratio of the goods consumed is
a. zero for each good b. higher for goods the consumer wants the most (highest marginal utility) c. maximized for the goods the consumer wants the most (highest marginal utility) d. higher than TU/P e. the same for each good
Economics