Industries X and Y Both Have Four-Firm Concentration Ratios of 63

question 2

Multiple Choice

Industries X and Y both have four-firm concentration ratios of 63 percent, but the Herfindahl index for X is 1,273, while that for Y is 1,197. These data suggest

• A)greater market power in Y than in X.
• B)greater market power in X than in Y.
• C)both industries are monopolistically competitive.
• D)that price competition is stronger in X than in Y.

Understand the importance of structural equality and civil society to democracy.

Appreciate the significance of major laws and reforms, such as the Voting Rights Act of 1965 and proportional representation, to democracy.

Understand the factors contributing to the low political participation rates among the new working class.

Gain knowledge of the significance of the Electoral College in U.S. elections and which states play pivotal roles.

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Definitions:

Financial Disclosure

The process of releasing all relevant financial information about a company to the public, ensuring transparency and aiding in informed decision making.

Internal Controls

Processes designed to ensure the reliability of financial reporting, effective and efficient operations, and compliance with laws and regulations.

Savings and Loan Associations

Financial institutions specializing in accepting savings deposits and making mortgage and other loans.

Governments

Institutions that exercise authority and perform the functions of governing a political state, region, or community through the exercise of legislative, executive, and judicial powers.