If the four firms in an industry represented 40, 30, 20, and 10 ...

[jho37]

If the four firms in an industry represented 40, 30, 20, and 10 of the market, respectively, what would be the Herfindahl-Hirschman Index for this industry? What if the largest firm then divested into two equal sized companies?
 a. 3,000 . 2,300.
  b. 2,300; 3,000
  c. 3,000 . 5,400
  d. 2,300; 5,400

Question 2

Adverse selection can occur if:
 a. high-risk persons insure themselves more heavily than low-risk persons.
  b. high-risk persons claim coverage which cannot be borne by the insurers.
  c. high-risk persons do not conceal information from the insurer.
  d. high-risk persons make an effort to take less risk in the presence of an insurance cover.

[nickk12214]

Answer to Question 1

a

Answer to Question 2

A

[jho37]

TYSM

[robbielu01]

Gracias!