If an Industry Has an HHI of 2,500,the Market Structure

question 45

Multiple Choice

If an industry has an HHI of 2,500,the market structure is that of

• A) a monopoly.
• B) monopolistic competition.
• C) an oligopoly.
• D) perfect competition.
• E) either monopoly or perfect competition, depending on the existence or absence of barriers to entry.

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Definitions:

Debt-Equity Ratio

A measure that indicates the balance between equity contributed by shareholders and debt employed to finance company assets.

Return On Equity

A gauge of corporate profitability that indicates the profit made from the investments of its shareholders.

Return On Assets

A financial ratio that indicates the percentage of profit a company earns in relation to its overall resources. It demonstrates how effectively a company is using its assets to generate earnings.

Average Collection Period

A measure of the average number of days it takes a company to collect payments from its credit sales.