Consider a Market Characterized by Two Firms That Set the Same

question 34

Multiple Choice

Consider a market characterized by two firms that set the same price in the market, P = $10.Total market demand is Q_T = 100 - 2P, of which the two firms share equally.Based on this information we can conclude

• A)the HHI = 5,000 and the Rothschild index is 1.
• B)the HHI = 2,500 and the Rothschild index is 2.
• C)the HHI = 5,000 and the Rothschild index is 2.
• D)none of the statements associated with this question are correct.

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Definitions:

Blinding

A method in experimental design that prevents participants, experimenters, or both from knowing which intervention participants are receiving to reduce bias.

Average Prices

The mean amount of money required to purchase a particular set of goods or services.

Supermarket Chains

Companies that own or operate multiple supermarket stores across different locations.

Blocking Variable

A variable introduced in an experimental design to account for potential variation, thereby reducing confounding effects.