Consider a Market Characterized by Two Firms That Set the Same

question 28

Multiple Choice

Consider a market characterized by two firms that set the same price in the market,P = $10.Total market demand is Q_T = 100 − 2P,of which the two firms share equally.Based on this information,we can conclude:

• A) the HHI = 5,000 and the Rothschild index is 1.
• B) the HHI = 2,500 and the Rothschild index is 2.
• C) the HHI = 5,000 and the Rothschild index is 2.
• D) None of the answers are correct.

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Definitions:

Rank

A measure of the relative position of an element within a set, often referred to in contexts like matrices or competitions.

Voters

Individuals who have the right to vote in an election, playing a crucial role in democratic processes by selecting leaders and deciding on legislative matters.

Candidates

Individuals who offer themselves for a role, position, or job, often through a selection or election process.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction.