In the market for bottled water, Fresh Springs has a 30 percent ...

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In the market for bottled water, Fresh Springs has a 30 percent share of the market, Swiss Springs has a 27 percent share, L'eau de France has a 13 percent share, and Mountain Water has a 10 percent share.
 
  The rest of the market consists of 20 firms with a 1 percent share of the market each. What is the value of the Herfindahl-Hirschman index? A) 2,418
  B) 80
  C) 1,918
  D) 2,818

Question 2

According to Nobel laureate Ronald Coase, firms exist in order to
 
  A) maximize transactions costs.
  B) minimize transactions costs.
  C) maximize transactions.
  D) employ workers.

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Answer to Question 1

C

Answer to Question 2

B