A Market Is Considered Competitive If the Herfindahl-Hirschman Index (HHI)is

question 85

Multiple Choice

A market is considered competitive if the Herfindahl-Hirschman Index (HHI) is ________ and its four-firm concentration ratio is ________.

• A) high; high
• B) high; low
• C) low; high
• D) low; low
• E) between 30 percent and 70 percent; greater than 5,000

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Definitions:

Wheat Spot Price

The current price at which wheat can be bought or sold for immediate delivery.

Loss

A decrease in monetary value, often referring to the difference between the purchase price and the lower selling price of an asset.

S&P 500 Index

A market index observing the activity of the top 500 large-scale corporations traded on US stock exchanges.

Futures Price

The agreed price for the assets to be traded in the future as determined in a futures contract.