Industries X and Y Both Have Four-Firm Concentration Ratios of 70

question 279

Multiple Choice

Industries X and Y both have four-firm concentration ratios of 70 percent, but the Herfindahl index for X is 2,500, while that for Y is 2,000. These data suggest

• A)greater market power in Y than in X.
• B)greater market power in X than in Y.
• C)that X is more technologically progressive than Y.
• D)that price competition is stronger in X than in Y.

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Definitions:

Physical Threat

Any potential cause of physical harm or damage to an individual's bodily integrity, security, or health.

Monetary Threat

refers to the risk of financial loss or damage, which can impact individuals, businesses, or economies.

Comparative Advertising

Comparative advertising involves an advertising strategy where a brand compares its product directly with competing products, emphasizing its advantages to influence consumer preference.

Emotional Appeal

A persuasive technique used in marketing and advertising that targets the audience's emotions to create a connection with the product or brand.