The Herfindahl Index Measures the

question 132

Multiple Choice

The Herfindahl index measures the

• A)average market share of the firms in an industry.
• B)total market share of the four largest domestic firms in an industry.
• C)total market share of the four largest firms worldwide in an industry.
• D)degree of concentration in an industry.
• E)degree of competition among the four largest firms in an industry.

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Definitions:

Demand for Labor

The total amount of labor (number of workers or hours worked) that employers want to hire at various wage rates.

Elastic

Describes a situation in which the demand for a product is sensitive to price changes; a small price change results in a significant change in quantity demanded.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing to purchase at various price points.

Slope

The measure of steepness or incline, typically describing the change in the vertical over the change in the horizontal.