Shilling Is the Practice of Compensating Consumers to Talk About

question 28

True/False

Shilling is the practice of compensating consumers to talk about, or promote, products without disclosing that they are working for the company.

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Definitions:

Four-Firm Concentration Ratio

A measure that indicates the total market share controlled by the four largest firms within an industry.

Herfindahl Index

A measure of market concentration calculated by summing the squares of the market shares of all firms in the industry.

Herfindahl Index

A measure of market concentration to assess the level of competition within an industry, calculated by summing the squares of each company's market share.

Highly Elastic

Describes a situation where demand for a product is highly sensitive to changes in price, leading to significant changes in quantity demanded.