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

question 245

Multiple Choice

Suppose the Herfindahl indexes for industries A, B, and C are 1,200, 5,000, and 7,500 respectively. These data imply that

• A)market power is greatest in industry A.
• B)market power is greatest in industry B.
• C)market power is greatest in industry C.
• D)industry A is more monopolistic than industry C.

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Definitions:

Balance Of Payments

An accounting record of all monetary transactions between a country and the rest of the world over a specific time period.

Hypothetical Data

Information or numbers that are assumed or simulated for the purpose of analysis or discussion.

Remittances

Money sent by individuals working abroad to their family or others in their home country.

Dollar Price

The cost or valuation of a good, service, or asset denominated in U.S. dollars.