The Most Reliable Measure of Market Concentration Is

question 94

Multiple Choice

The most reliable measure of market concentration is:

• A)the Cost of Living index.
• B)the Herfindahl index.
• C)the Market index.
• D)the Market-Value weighted index.
• E)the Wholesale Price index.

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Definitions:

Elasticity of Market Supply

The degree to which the quantity supplied of a good changes in response to a change in price.

Output Expansion

The increase in the production of goods and services in an economy or by a firm, often as a result of increased demand or improved production capabilities.

Period Lengthened

The extension of time allocated for a particular activity, phase, or process.

Price-taker Market

A market in which individual sellers cannot influence the market price and must accept the prevailing market price for their goods or services.