Consider an Industry That Is Made Up of Nine Firms

question 25

Multiple Choice

Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows:
A.Firm A: 30%
B.Firm B: 20%
C.Firms C,D,and E: 10% each
D.Firms F,G,H,and J: 5% each
What is the value of the Herfindahl-Hirschman Index and how is the industry categorized?

• A)1700;moderately concentrated
• B)1425;moderately concentrated
• C)1600;moderately concentrated
• D)2600;highly concentrated

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Definitions:

Repressor Proteins

Proteins that bind to specific sequences of DNA to inhibit the transcription of genes, playing a critical role in gene regulation.

Transcription

The method through which the data contained in a DNA strand is replicated into a fresh molecule of messenger RNA (mRNA).

Auxin

A class of plant hormones that play crucial roles in the coordination of many growth and behavioral processes in the plant's life cycle.

Cytokinin

A class of plant hormones that promote cell division and growth, influencing various aspects of plant development.