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Author Question: Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. ... (Read 49 times)

dejastew

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on: Jun 29, 2018
Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. Plumper's share is 30 percent. Drippy's share is 20 percent. Kool Kid's share is 10 percent. Nappomatic's share is 10 percent.
 
  The Herfindahl-Hirschman Index in this industry is A) 100.
  B) 900.
  C) 1,350.
  D) 2,400.

Question 2

How do banks create liquidity?
 
  What will be an ideal response?


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emily12345

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Banks create liquidity because they accept short-term deposits and make long-term loans. The short-term deposits can be quickly and easily changed into moneyindeed, some of the deposits are money itself In exchange, the bank makes long-term loans that cannot be converted to money until their due date is reached.


dejastew

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Dnite

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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