4. A Herfindahl-Hirschman Index is calculated by (A) Summing the amount of sales by the four largest firms and dividing by total industry sales. (B) Summing the advertising expenditures of the firms that want to merge by total industry advertising expenditures. (C) Dividing the number of firms wanting to merge by the total number in the industry. (D) Summing the squares of the market shares of each firm in the industry.

1. Figure 1 demonstrates that (A) In the short run, the monopolistic competitor produces an output \( Q_{b} \) but in the long run after it adjusts its capacity, it will produce the allocatively efficient output, \( Q_{a} \). (B) It is not possible for a monopolistic competitor to produce the productively efficient output level, \( Q_{a} \), because of product differentiation. (C) It is possible for a monopolistic competitor to produce the productively efficient output level, \( Q_{a} \), if it is willing to lower its price from \( P_{b} \) to \( P_{a} \). (D) In the long run, the monopolistic competitor produces the minimum-cost output level, \( Q_{a} \), but in the short run its output of \( Q_{b} \) is not cost minimizing. Figure 2 In 2025, New Taipei City's Franchise and Concession Review Committee granted permission to firm A to enter the market for cable TV, ending the monopolies of firms B and C. Figure 2 shows the cable television market in New Taipei City.

相關試題

相關試卷