In the Following Figure, the First Panel Shows a Market

question 63

True/False

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-If there are 50 firms in the industry, and each have an equal market share, the Herfindahl index will be equal to 1,00,000.

---

Definitions:

Balance of Payments

A record of all transactions made between entities in one country and the rest of the world over a specific period of time.

Current Account

A segment of a nation's balance of payments that tracks the exchange of goods and services, net income from investments, and transfer payments.

Capital Account

A national account that shows the net change in asset ownership for a nation, reflecting movements of financial capital and tangible capital into and out of the country.

Current Account

A component of a country's balance of payments that measures the trade of goods and services, along with earnings on foreign investments minus payments made to foreign investors.