Author Question: Because some monopolies could still earn an economic profit even if the firm is inefficient, ... (Read 54 times)

DelorasTo · **on:** Jun 30, 2018

Because some monopolies could still earn an economic profit even if the firm is inefficient, corporate executives might waste resources by indulging in
a. long lunches
b. corporate jets
c. plush offices
d. None of the answers is correct.
e. All of the answers are correct.

Question 2

If a firm with a 10 percent market share merges with a firm with 15 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares.
a. It rises by 100.
b. It rises by 300.
c. It falls by 200.
d. It falls by 250.
e. It rises by 25.