Suppose the Herfindahl Indexes for Industries A, B, and C

question 133

Multiple Choice

Suppose the Herfindahl indexes for industries A, B, and C are 2,200, 2,000, and 1,600, respectively. These data imply

• A)that market power is greatest in industry C.
• B)that market power is greatest in industry B.
• C)that market power is greatest in industry A.
• D)nothing about the degree of concentration across the three industries.

---

Definitions:

Demographic Transition View

A theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Population Growth

The increase in the number of individuals in a population, due to factors like birth rates exceeding death rates.

Sociocultural Considerations

Aspects of social and cultural contexts that influence behaviors, practices, and policies, recognizing the impact of societal and cultural factors.

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.