« previous next »

Author Question: What is the Herfindahl-Hirschman Index and what does it measure? What will be an ideal ... (Read 88 times)

Pineapplelove6

  • Hero Member
  • *****
  • Posts: 560
on: Jun 29, 2018
What is the Herfindahl-Hirschman Index and what does it measure?
 
  What will be an ideal response?

Question 2

Price discrimination by a monopoly
 
  A) increases consumer surplus.
  B) decreases consumer surplus.
  C) increases the firm's profit.
  D) Both answers B and C are correct.


kristenb95

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

The Herfindahl-Hirschman Index, or HHI, is an index used to measure the extent to which a market is dominated by a small number of firms. The HHI equals the sum of the squared percentage market shares of each of the 50 largest firms in the market. A monopoly will have a HHI of 10,000 whereas perfect competition will have a small HHI.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Digital rectal exam (DRE). The physician’s index finger is inserted into the rectum and pressed agai Digital rectal exam (DRE). The physician’s index finger is inserted into the rectum and pressed agai
Body mass index table. Body mass index table.
Wintrobe tube and Westergren tests are used to measure the ESR. Wintrobe tube and Westergren tests are used to measure the ESR.
Using a DMM to measure the open-circuit voltage of a battery. Using a DMM to measure the open-circuit voltage of a battery.
A partial stream sampling exhaust probe being used to measure exhaust gases in parts per million ... A partial stream sampling exhaust probe being used to measure exhaust gases in parts per million ...
Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ... Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ...
Video: Kidney Stones

For a complete list of videos, visit our video library