Author Question: If more firms enter a market that initially had 20 firms in it, then the Herfindahl-Hirschman Index ... (Read 152 times)

Jipu 123 · **on:** Jun 29, 2018

If more firms enter a market that initially had 20 firms in it, then the Herfindahl-Hirschman Index will ________.

A) increase
B) decrease
C) not change
D) change in an unpredictable direction

Question 2

Joshua consumes only apples and bread and is in consumer equilibrium. Joshua reads that eating bread is healthy, so his total utility from each loaf of bread increases. At his new consumer equilibrium Joshua would consume

A) more apples and less bread.
B) fewer apples and more bread.
C) some combination of apples and bread corresponding to a lower ratio of the marginal utility of bread to the marginal utility of apples.
D) the same quantity of apples and the same quantity of bread.