Industries X and Y Both Have Four-Firm Concentration Ratios of 32

question 168

Multiple Choice

Industries X and Y both have four-firm concentration ratios of 32 percent, but the Herfindahl index for X is 256, while that for Y is 264. These data suggest

• A) greater market power in X than in Y.
• B) greater market power in Y than in X.
• C) that X is more technologically progressive than Y.
• D) that price competition is stronger in Y than in X.

---

Definitions:

Authority

The authority or capability to issue commands, make choices, and ensure compliance.

Network Structure

An organizational model characterized by distributed power, decentralized decision-making, and a focus on connecting individuals and units as nodes in a larger network.

Full-Time Employees

Individuals who work a minimum number of hours defined by their employer, typically with a full workweek, and are entitled to full employment benefits.

Overhead Costs

Indirect costs or expenses related to the operation of a business that are not directly tied to producing goods or services, such as rent, utilities, and administrative salaries.