The Herfindahl index would be 5000 if the only two firms in an ...

[khang]

The Herfindahl index would be 5000 if the only two firms in an industry have equal market shares.
 a. True
  b. False

Question 2

Suppose a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly decreases. What might happen to the typical firm in the long run?
 a. It would experience no change from the original equilibrium
  b. It would experience a higher equilibrium price
  c. It would experience a lower equilibrium price
  d. It would experience the same equilibrium price but would increase output
  e. It would experience a lower average total cost and would increase output

[jordangronback]

Answer to Question 1

A

Answer to Question 2

C

[khang]

Thank you

[jordangronback]

Happy to help you