If There Are Only Three Firms in an Industry with 50

question 49

Multiple Choice

If there are only three firms in an industry with 50 percent, 40 percent, and 10 percent of the market share, respectively, the Herfindahl Index is _____.​

• A)40
• B)100
• C)200
• D)33
• E)4,200

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Definitions:

Selling Price

The purchase price is the sum a consumer spends to obtain goods or services from a vendor.

Markdown

A reduction from the original or list price of a product or service to increase its attractiveness to buyers.

Motorcycle

A two-wheeled motor vehicle that is faster and more fuel-efficient than a car, used for transportation, recreation, and sports.

Machinery

Machinery encompasses machines and their components, which are used in industry or manufacturing to perform tasks, including vehicles, equipment, and factory machines.