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:

Depreciable Asset

An asset that loses value over time due to wear and tear or obsolescence, which can be depreciated over its useful life.

Realisation of Profit

The process by which a profit is recognized on the books once a transaction is completed and the revenue can be reliably measured.

External Party

An individual, group, or organization outside of a company that can affect or be affected by the business's activities.

Group

A parent and its subsidiaries.