If an Industry Has a Herfindahl Index of 3,000, the Contestable

question 75

Multiple Choice

If an industry has a Herfindahl index of 3,000, the contestable market model probably would predict that the industry would be more likely to have a:

• A) monopolistic price.
• B) competitive price.
• C) monopolistic price if there are no barriers to entry.
• D) competitive price if there are no barriers to entry.

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Definitions:

Electroencephalogram

An exam that records the brain's electrical movements through small, metallic discs affixed to the head.

EEG

Electroencephalography, a non-invasive method that records electrical activity of the brain to help diagnose conditions like epilepsy and sleep disorders.

Optical Tomography

A medical imaging technique that uses light to capture multidimensional images of a structure, especially useful in visualizing soft tissues.

Microdialysis

A technique used in research to sample the chemical composition of extracellular fluid in living tissues, allowing for the measurement of neurotransmitters, hormones, and drugs.