When the Herfindahl-Hirschman Index for an Industry Is

question 60

Multiple Choice

When the Herfindahl-Hirschman Index for an industry is

• A) very small, the industry can be perfectly competitive.
• B) very large, the industry can be perfectly competitive.
• C) 10,000, the industry is perfectly competitive.
• D) very small, the industry can be a monopoly.
• E) above 5,000, the industry is considered not very competitive, and when it is below 5,000, the industry is considered very competitive.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares historical data, such as financial statements, over a series of periods to identify trends and growth patterns.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.

Debt To Total Assets Ratio

A financial metric that indicates the percentage of a company's assets that are financed by debt.