-A Monopolistic Industry Will Have a Herfindahl Index Value Of

question 56

Multiple Choice

-A monopolistic industry will have a Herfindahl index value of:

• A)1.
• B)100.
• C)500.
• D)1000.
• E)10.

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Definitions:

Microeconomics

Microeconomics analyzes individual decision makers and markets, focusing on supply and demand, price, and output decisions in individual markets.

Production Possibilities Frontier

A depiction that captures every maximum production possibility for two specific commodities, predicated on a range of inputs that includes resources and additional variables.

Opportunity Costs

The expense incurred from not selecting the next most favorable choice when a decision is taken or preferring one alternative over another.

Efficient

The characteristic of a resource allocation that maximizes the total surplus received by all members of society.