True Two industries that have the same four-firm concentration ratio can have significantly different Herfindahl indexes.
What is Herfindahl indexes?
The Herfindahl-Hirschman Index (HHI), a popular indicator of market concentration, is frequently used before to and after merger and acquisition (M&A) deals to assess market competitiveness.
The index gauges a company's size in relation to the size of the industry it operates in as well as its level of competition. The market share of each company that competes in a market is squared, and the resulting values are then added to determine the HHI. Its values can range from almost 0 to 10,000, with lower numbers denoting a less crowded market.
A widely used indicator of market concentration is the HHI. It is determined by squaring the market share of each company that is engaged in market competition and then adding the resulting figures.
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Answer:
Answers 1, 3 and 5 are correct
Explanation:
With globalization using lower labor costs in other countries ocurs through things like outsourcing. Transporting resources quickly from distant locations can also be done through globalization. For example, the U.S. imports less expensive from countries like China. Communicating more quickly with other countries can be see through social media etc.
B. the subsidized federal loan
Answer:
True.
Explanation:
True, The given situation is true because the pleasure (utility) provided by Alpha is greater than the pleasure (utility) provided by the Beta. Therefore, a rational person will buy only that commodity which has a higher utility. Here, we can see the Alpha provides 10 units of utility or pleasure per dollar while Beta provides 8 units of utility or pleasure per dollars. So, only Alpha will be chosen.
Answer:
It is profitable to accept the special offer.
Explanation:
Giving the following information:
The shopping mall would like to purchase 200 extra-large white trees. Apex Company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree.
Variable costs:
Direct materials $50.00
Direct labor (variable) $3.50
Variable manufacturing overhead $1.00
Additional variable cost= $6
This special order would require an investment of $10,000 for the molds required for the extra-large trees.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs (except the incremental fixed cost).
Unitary variable cost= 50 + 3.5 + 1 + 6= $60.5
Fixed costs= 10,000
Incremental income= (200*120) - (200*60.5) - 10,000= $1,900
It is profitable to accept the special offer.
