Suppose That a Particular Industry Has a Four-Firm Concentration Ratio

question 60

Multiple Choice

Suppose that a particular industry has a four-firm concentration ratio of 25 and a Herfindahl index of 600. Most likely, this industry would achieve

• A)$15M for firm A and $5M for firm B.
• B)$17M for firm A and $17M for firm B.
• C)$3M for firm A and $3M for firm B.
• D)$5M for firm A and $15M for firm B.

---

Definitions:

Type II Alveolar Cell

is a cell in the alveoli of the lungs that produces surfactant to reduce surface tension and prevent lung collapse.

Surfactant

A substance that reduces surface tension, in the lungs it prevents the collapse of alveoli during exhalation.

Gas Exchange

The biological process through which gases (like oxygen and carbon dioxide) are transferred between the bloodstream and the environment.

Odor Molecules

Chemical compounds that are perceived by the olfactory system, leading to the sensation of smell.