Table 4-3 -Refer to Table 4-3. If These Are the Only Four

question 213

Multiple Choice

Table 4-3
-Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

• A)decreases by 1.75 units.
• B)increases by 2 units.
• C)decreases by 7 units.
• D)decreases by 24 units.

Understand the concept and significance of barriers to entry in determining market structures.

Describe and calculate the Herfindahl-Hirschman Index (HHI) and its implications for market concentration.

Comprehend the role of economies of scale as a source of oligopoly.

Identify the conditions under which collusion among firms might occur and its legal implications.

---

Definitions:

Median

The middle value in a set of data, arranged in ascending or descending order, or the average of the two middle values if there is an even number of observations.

Even Number

An integer that is divisible by 2 without leaving a remainder.

Observations

Data points collected during a study or experiment, representing individual instances or occurrences of the variables being studied.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies how much the data points differ from the mean.