Which of the Following Market Structures Generally Has a Herfindahl

question 11

Multiple Choice

Which of the following market structures generally has a Herfindahl index at .6 and above (usually having light competition,unless threatened by entry) ?

• A) Perfect competition
• B) Monopolistic competition
• C) Oligopoly
• D) Monopoly
• E) N-firm

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Definitions:

Forward Contract

A financial derivative that represents a customized agreement to buy or sell an asset at an agreed-upon price on a specific future date.

Spot Rate

This is the current market price at which a particular currency can be bought or sold for immediate delivery.

Cash Flow Hedge

A financial strategy used to manage the risk of fluctuating cash flows due to changes in exchange rates, interest rates, or commodity prices.

Net Method

An accounting system that records transactions with their net effect, considering any discounts or allowances for prompt payment.