The Advantage of the Herfindahl Index Over the Four- and Eight-Firm

question 95

Multiple Choice

The advantage of the Herfindahl index over the four- and eight-firm concentration ratios is that it provides information

• A)on the degree to which foreign firms impact domestic competition.
• B)about the dispersion of firm size in an industry.
• C)on the degree to which marginal revenue is greater than marginal cost (for a firm).
• D)b and c
• E)none of the above

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