Which of the Following Indicates a High Degree of Competition

question 234

Multiple Choice

Which of the following indicates a high degree of competition?

• A) A HHI that is between 1,800 and 2,800.
• B) A HHI that exceeds 2,800.
• C) A concentration ratio that is less than 40 percent.
• D) A concentration that is greater than 60 percent .

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Definitions:

Supply Curve

A visual diagram illustrating the connection between a product's price and the amount of the product that sellers are prepared to offer.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production volume changes.

Monopolist

An individual or company that holds a monopoly in a particular market, controlling the supply of a product or service and potentially its price.

Railroad

A mode of land transportation involving trains running on tracks to transport passengers or goods across various distances.