Suppose There Are Three Firms in a Market

question 18

Multiple Choice

Suppose there are three firms in a market.The largest firm has sales of $50 million,and each of the other two firms has sales of $25 million.The Herfindahl-Hirschman Index of this industry is

• A)2,500.
• B)3,750.
• C)2,550.
• D)3,125.

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Definitions:

Material Benefits

Tangible resources or goods that an individual gains, which can enhance their reproductive success or survival.

Kin-selection Theory

A theory in evolutionary biology suggesting that individuals can pass on their genes by helping relatives to reproduce, not just through their own offspring.

Material Benefits

Tangible rewards or advantages, such as food or shelter, obtained through specific behaviors or interactions.

Good Genes Model

A hypothesis in sexual selection suggesting that individuals choose mates on the basis of traits that indicate genetic quality, leading to enhanced survival or reproductive success in offspring.