-The Herfindahl-Hirschman Index Is Used as a Guideline to Determine

question 150

Essay

-The Herfindahl-Hirschman Index is used as a guideline to determine if a market is competitive or concentrated. Calculate the index value for each market described below.
a) 100 firms, each of which produces 1 per cent of market output
b) 50 firms, each of which produces 2 per cent of market output
c) 25 firms, each of which produces 4 per cent of market output
d) 20 firms, each of which produces 5 per cent of market output
e) 10 firms, each of which produces 10 per cent of market output
f) 5 firms, each of which produces 20 per cent of market output
g) 2 firms, each of which produces 50 per cent of market output

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Definitions:

Imitated

The action of copying or reproducing someone else's behavior, actions, or expressions, often a key method of learning and socialization.

Higher-order Conditioning

A form of learning in which a stimulus is paired with a previously conditioned stimulus, resulting in the new stimulus eliciting the conditioned response.

Classical Conditioning

A learning process that involves creating associations between a naturally occurring stimulus and a previously neutral stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with a unconditioned stimulus to elicit a conditioned response.