Industries X (production of plastic sheds in Canada) and Y (production of cardboard in Canada) both have four-firm concentration ratios of 16 percent, but the Herfindahl index for X is 102, while that for Y is 95. These data suggest Multiple Choice both industries are strongly oligopolistic. both industries are experiencing diminishing returns. greater market power in Y than in X. greater market power in X than in Y. that price competition is stronger in X than in Y.
Industries X (production of plastic sheds in Canada) and Y (production of cardboard in Canada) both have four-firm concentration ratios of 16 percent, but the Herfindahl index for X is 102, while that for Y is 95. These data suggest Multiple Choice both industries are strongly oligopolistic. both industries are experiencing diminishing returns. greater market power in Y than in X. greater market power in X than in Y. that price competition is stronger in X than in Y.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 16SQ
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Industries X (production of plastic sheds in Canada) and Y (production of cardboard in Canada) both have four-firm concentration ratios of 16 percent, but the Herfindahl index for X is 102, while that for Y is 95. These data suggest
Multiple Choice
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price competition is stronger in X than in Y.
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