There are five firms in the cresset industry. The market shares ...

[asmith134]

There are five firms in the cresset industry. The market shares of the five firms are 60 percent, 15 percent, 15 percent, 6 percent, and 4 percent. The Herfindahl index is
 a. 96
  b. 4,086
  c. 10,000
  d. 4,102
  e. 4,100

Question 2

Suppose a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly decreases. What happens to the industry in the long run?
 a. It experiences no change from the original equilibrium
  b. It experiences a higher equilibrium price and produces less output
  c. It experiences a lower equilibrium price and produces less output
  d. It experiences the same equilibrium price but produces more output
  e. It experiences the same equilibrium price but produces less output

[ansleighelindsey]

Answer to Question 1

D

Answer to Question 2

C

[asmith134]

Thank you

[ansleighelindsey]

Happy to help you