Author Question: Whenever the largest firm in a concentrated industry breaks into two equal sized parts, the four ... (Read 24 times)

Ebrown · **on:** Jun 30, 2018

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.