Suppose That Industry a Has Two Firms of the Same

question 28

Multiple Choice

Suppose that Industry A has two firms of the same size and Industry B has three firms with 65 percent, 30 percent, and 5 percent market shares, respectively. Which of the following is true of the Herfindahl-Hirschman indexes for the two industries?

• A)The HHI for Industry A is 50 higher than the HHI for Industry B.
• B)The HHI for Industry A is 50 lower than the HHI for Industry B.
• C)The HHI for Industry A is 150 higher than the HHI for Industry B.
• D)The HHI for Industry A is 150 lower than the HHI for Industry B.
• E)The HHI is the same for both industries.

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Definitions:

Code B97.0

A specific code in the International Classification of Diseases system, representing a particular medical condition or diagnosis.

Adenovirus

A type of virus that can cause a variety of illnesses, from mild respiratory infections to severe illnesses like pneumonia.

Echo Virus

A type of enterovirus that can cause a variety of diseases, ranging from mild febrile illness to severe conditions like meningitis.

Code L13.0

A specific code possibly used in a medical classification system to indicate a particular diagnosis or condition, but without context, the exact definition cannot be provided.