Whenever the largest firm in a concentrated industry breaks into ...

[Ebrown]

Whenever the largest firm in a concentrated industry breaks into two equal sized parts, the four firm concentration ratio ___ and the Herfindahl-Hirschman Index ____:
 a. Will fall; will fall.
 b. Will fall; may fall or stay the same.
 c. May fall or stay the same; will fall.
 d. May fall or stay the same; May fall or stay the same.

Question 2

An insured person's incentive to behave in ways that raise the probability of a claim is known as:
 a. a moral hazard.
  b. the lemons problem.
  c. the problem of adverse selection.
  d. the problem of advantageous selection.

[heinisk01]

Answer to Question 1

a

Answer to Question 2

A

[Ebrown]

Excellent

[cdmart10]

Gracias!