Author Question: After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to ... (Read 92 times)

newyorker26 · **on:** Jun 30, 2018

After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to learn that one benefit of being a monopoly was that her company
a. could charge as high a price as desired
b. was in a good position to capture the fruits of any innovation
c. received increased scrutiny from government regulators
d. started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company
e. contributed to the deadweight loss in the economy

Question 2

If there are only three firms in an industry with 50 percent, 40 percent, and 10 percent of the market, respectively, the Herfindahl Index is
a. 40
b. 100
c. 200
d. 33
e. 4,200