Suppose That Industry X Has Two Firms with Equal Market

question 258

Multiple Choice

Suppose that Industry X has two firms with equal market shares, and Industry Y has three firms with 65 percent, 30 percent, and 5 percent market shares, respectively. Which of the following is true?

• A) The HHI for Industry X is 50 higher than the HHI for Industry Y.
• B) The HHI for Industry X is 150 lower than the HHI for Industry Y.
• C) The HHI for Industry X is 100 higher than the HHI for Industry Y.
• D) The HHI is the same between Industry X and Industry Y.

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Definitions:

Environmental Pollution

The contamination of the natural environment causing adverse effects on living organisms and the ecosystem.

Carpooling

Carpooling is the practice of sharing a car ride with one or more individuals to reduce individual travel costs, environmental impact, and traffic congestion.

Kantianism

A philosophical doctrine based on the ethics of Immanuel Kant, emphasizing duty, moral law, and the categorical imperative.

Unethical Action

Conduct that goes against moral principles or professional standards, often causing harm or disadvantage to others.