If the Herfindahl-Hirschman Index in the Market for Single-Use Cameras

question 35

Multiple Choice

If the Herfindahl-Hirschman Index in the market for single-use cameras equals 10,000, then the single-use camera industry is best characterised as

• A) perfect competition.
• B) monopolistic competition.
• C) a monopoly.
• D) an oligopoly.
• E) either a monopoly or monopolistic competition.

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Definitions:

Elasticity of Supply

The measure of how much the quantity supplied of a good changes in response to a change in price.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding everything else constant.

Housing Demanded

The quantity of residential properties that buyers are willing and able to purchase at a given price level.

Demand Elasticity

A quantification of the effect of price variation on the demand level for a specific good.