32. What is the Herfindahl-Hirschman Index (HHI) for an industry in which five f

Question

32. What is the Herfindahl-Hirschman Index (HHI) for an industry in which five firms each control 20% of the market? a. 20; b. 100; c. 2,000; d. 5,000 33. Which of the following pieces of antitrust legislation banned tying contracts, limited mergers, and banned price discrimination? a. The Sherman Act. b. The Wheeler-Lea Act. c. The Clayton Act. d. The same legislation that created the Interstate Commerce Commission (ICC). 34. Refer to the figure below. How much profit does the profit-maximizing monopoly earn? a. $0; b. $6,000; c. $5,040; d. $10; e. $96035. Refer to the figure below. From the structure of cost and revenue of the firm, we would predict that this monopoly will: a. Shut down in the short run, and go out of business in the long run. b. Shut down in the short run, but continue to operate in the long run. c. Operate in the short run, but go out of business in the long run. d. Operate

Explanation / Answer

32.   Herfindahl-Hirschman Index (HHI) = 20^2 + 20^2+ 20^2+ 20^2+ 20^2 = C. 2000

33. a. The Sherman Act. b. The Wheeler-Lea Act. c. The Clayton Act.

Figure n't there for 34 and 35

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