In the market for bottled water, Fresh Springs has a 30 percent share of the market, Swiss Springs has a 27 percent share, L'eau de France has a 13 percent share, and Mountain Water has a 10 percent share
The rest of the market consists of 20 firms with a 1 percent share of the market each. What is the value of the Herfindahl-Hirschman index? A) 2,418
B) 80
C) 1,918
D) 2,818
C
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Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, society may move to PPF2 as a result of
Suppose Mike and Renee are the only two people in a very simple economy and that they produce and exchange two goods, soda and pretzels. Which of the following might cause a recession in this simple economy?
a. Mike gets the idea that Renee wants more soda, which Mike produces. b. Renee gets the idea that Mike wants more pretzels, which she produces. c. Mike gets the idea that Renee wants less soda, which he produces. d. Renee gets the idea that Mike wants less soda, which he produces. e. The production of pretzels being equal to the production of soda.