-The Table Above Lists the Market Shares of the Twenty

question 50

Multiple Choice

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would

• A) regard the industry as highly concentrated.
• B) be against any two firms merging.
• C) consider the market oligopolistic.
• D) regard the industry as competitive.

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Definitions:

Quota Rent

The earnings that accrue to the license-holder from owning the right to import a limited quantity of goods under a quota system.

New York Taxicab

An iconic mode of public transportation in New York City, known for its yellow cabs that offer transport services across the city.

Quota Rent

Extra income earned by producers who benefit from an import quota, as it raises the market price of their goods.

Demand Price

The price at which consumers are willing to buy a specific quantity of a good or service at a given time.