Answer:
Herfindahl-Hirschman Index is 1400 and the industry is categorized as a competitive industry
Explanation:
The Herfindahl-Hirschman Index is a market indicator that is used to measure how competitive the companies or firms in an industry is. It tells whether the industry is highly competitive or monopolistic.
It is obtained by adding the square of the market share of all the firms in an industry. That is,
Herfindahl-Hirschman Index (HHI) = s1 + s2 + s3 +....... sn
(where s = market share of individual firms in an industry.)
From the question,
Herfindahl-Hirschman Index (HHI) = (30)² + (20)² + 10)² +(10)² + (10)²+ (5)²
+ (5)²+ (5)² + (5)²
= 600 + 400 + 100 +100 + 100 + 25 + 25 +
+ 25 + 25
= 1400
An industry with an Herfindahl-Hirschman Index of less than 1500 units is categorized as a COMPETITIVE INDUSTRY.
One with an index of between 1500 to 2500 is considered as moderately competitive.
While an industry with higher values of HHI tends towards a monopoly.
Answer:
The correct answer is:
True
Explanation:
The business cycle is a model that let see how the GDP of a country changes through time. Business cycle is classified in four different stages peak, trough, contraction, and expansion. These kind of fluctuations normally occur in the trade, production and all the economic activity of a country. The business cycle refers to the changes or fluctuations that can be experienced in the economic model measured by the GDP (Gross Domestic Product) and it is reflected in the increases or decreases in economy.
<span>This is a corporation. Corporations usually consist of boards of directors and other groups of people, and can continue to exist even after the founders of the business cease to exist or otherwise leave their founding role.</span>
The answer is interest. whenever you take a car loan from a bank or a financial institution, you always have to pay interest on the amount borrowed or the principal amount. the interest is how the financial institution or bank will earn through lending money