The Herfindahl Index for the Industry Described in This Table

question 131

Multiple Choice

The Herfindahl index for the industry described in this table is

• A)90.
• B)2,750.
• C)greater than it would be if there were only four firms in the industry.
• D)2,700.

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Definitions:

Total Revenue

The total income a firm receives from the sale of its products, calculated by multiplying price by quantity sold.

Price Falls

A situation where the market price of a good or service decreases due to factors such as increased supply or decreased demand.

Midpoint Formula

A method used in economics to calculate the elasticity of demand or supply by taking the average of the starting and ending prices and quantities.

Hot Dogs

A cooked sausage served in a sliced bun and often topped with condiments, considered a staple of American fast food.