Suppose a Jar of DeLux Popcorn That Is Ultimately Sold

question 103

Multiple Choice

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: $$\begin{array} { l c c } \text { Name of Company } & \text { Revenues } & \text { Cost of Purchased Inputs } \\\text { Fulton Family Farm } & \$ 0.50 & 0 \\\text { DeLux Popcorn Co. } & \$ 2.50 & \$ .50 \\\text { Friendly Groceries } & \$ 4.00 & \$ 2.50\end{array}$$ If the corn was grown and the jar of popcorn produced in the year 2009, but the jar was sold at Friendly Groceries in the year 2010, what is the contribution of these transactions to GDP in the year 2009?

• A) $0.50
• B) $2.00
• C) $2.50
• D) $3.00

---

Definitions:

Antitrust Division

A government division responsible for enforcing laws to promote competition and prevent monopolies and other activities that restrain trade.

Moderately Concentrated

Describes an industry structure where a few firms occupy a significant portion of the market share but not to the extent of creating a monopoly or oligopoly.

Pure Monopoly

An industry with a single firm that produces a product for which there are no close substitutes and in which significant barriers to entry prevent other firms from entering the industry to compete for profits.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration used to determine the level of competition within an industry.