When the Herfindahl-Hirschman Index for an Industry Is

question 60

Multiple Choice

When the Herfindahl-Hirschman Index for an industry is

• A) very small, the industry can be perfectly competitive.
• B) very large, the industry can be perfectly competitive.
• C) 10,000, the industry is perfectly competitive.
• D) very small, the industry can be a monopoly.
• E) above 5,000, the industry is considered not very competitive, and when it is below 5,000, the industry is considered very competitive.

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Definitions:

General Journal

A comprehensive accounting record where all financial transactions are initially recorded, using a double-entry accounting system.

Nonparticipating

typically refers to an insurance or investment product feature where the holder does not have the right to receive dividends or bonuses generated from the underlying pool of assets.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, which may bear no relation to its market value.

Dividends Distributed

The total amount of dividends that have been given out to shareholders over a specified period.