If There Are Only Two Firms in an Industry, the Value

question 150

True/False

If there are only two firms in an industry, the value of the Herfindahl index must be 5, 000.

---

Definitions:

Expedited Funds Availability Act

A United States federal law designed to regulate the amount of time a bank can hold deposited funds before making them available to the depositor.

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulation of financial institutions, and maintenance of financial stability.

Check-Processing Region

An area or zone within the banking system designated for the processing and clearing of checks and other negotiable instruments.

Certified Check

A check for which the bank confirms that sufficient funds exist in the account to cover the check, and so sets aside the amount needed until the check is cashed or expires.