The Following Are the Respective Numbers for the Four-Firm Concentration

question 12

Multiple Choice

The following are the respective numbers for the four-firm concentration ratio and Herfindahl index in an industry. Which set of numbers would suggest that the industry was monopolistically competitive?

• A) 25 and 207
• B) 76 and 2662
• C) 80 and 1800
• D) 89 and 2582

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Definitions:

Regulatory Standards

Established rules and specifications issued by authoritative bodies to ensure products, services, or processes meet specific requirements.

Clayton Act

A U.S. law enacted in 1914 aimed at promoting competition and preventing monopolies by addressing specific practices not covered by the Sherman Antitrust Act.

Interlocking Directorates

The practice of having the same individuals serve on the boards of directors of multiple, often competing, companies.

Competitive Sales

Sales activities that occur in a market where multiple sellers are trying to attract the same buyers, emphasizing price, quality, and service to win business.