Suppose That the Demand in a Particular Industry Is Given

question 70

Multiple Choice

Suppose that the demand in a particular industry is given by Q^d = 500 − 2P.When the market price in the industry is $50 per unit,total demand in the industry is _________.Furthermore,assume that the entire market consists of four firms that share the market equally.The HHI under these conditions is then _________.

• A) 225 units; 1,600
• B) 400 units; 2,500
• C) 225 units; 3,333.33
• D) 400 units; 10,000

---

Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on the accounting equation; assets and expenses normally have a debit balance, while liabilities, equity, and revenue normally have a credit balance.

Withdrawals

Money taken out from a bank account, or the act of taking out funds or assets from a business by the owner for personal use.

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.