The Largest Firm in Industry Q Has a 50% Market

question 128

Multiple Choice

The largest firm in Industry Q has a 50% market share and the next five firms each has a market share of 10%.The largest firm in Industry R has a 40% market share and the next three firms each has a market share of 20%.Which statement is true?

• A)Industry Q has a higher Herfindahl-Hirschman Index than Industry R.
• B)Industry R has a higher Herfindahl-Hirschman Index than Industry Q.
• C)The HHIs of these industries are equal.
• D)None of these statements are true.

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Definitions:

Primary-process Thought

A mode of thinking that is driven by the unconscious mind, where logic is not linear and reality is not strictly adhered to, often found in dreams and fantasies.

Secondary-process Thought

Mature thought processes needed to deal rationally with the external world.

Ego Psychology

A school of psychoanalytic thought focused on the functions of the ego in dealing with the demands of the external world, inner desires, and self-esteem.

Freudian Psychoanalysis

A method of psychological theory and therapy initiated by Sigmund Freud, focusing on unconscious motives and conflicts.