If there are five firms in an industry, each with a market share ...

[biggirl4568]

If there are five firms in an industry, each with a market share of 20 percent, the Herfindahl-Hirschman Index (HHI) of concentration is
 
  A) 2000.
  B) 400.
  C) 100.
  D) 20.

Question 2

Which of the following statements is TRUE?
 
  A) The presence of positive economic profit in a perfectly competitive market is consistent with the characteristics of a long-run competitive equilibrium.
  B) When firms in a perfectly competitive market incur economic losses, some will exit in the long run, thereby shifting the industry supply curve rightward.
  C) If a profit-maximizing firm in a perfectly competitive market is making an economic profit, then it must be producing at a level of output where price is greater than average total cost.
  D) If a profit-maximizing firm in a perfectly competitive market is incurring an economic loss, then it must be producing at a level of output where price is greater than average total cost.

[kishoreddi]

Answer to Question 1

A

Answer to Question 2

C