-The Table Above Lists the Market Shares of the Twenty

question 50

Multiple Choice

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would

• A) regard the industry as highly concentrated.
• B) be against any two firms merging.
• C) consider the market oligopolistic.
• D) regard the industry as competitive.

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Definitions:

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.

Financial Capital

The money, credit, and other forms of funding that businesses use to invest in resources for future growth.

Opportunity Cost

Waiving prospective gains from various alternatives by settling on one option.

Foregone Alternative

The option or course of action that is given up when another is chosen; closely related to the concept of opportunity cost.