If Firms J, K, and L were to merge, the four-firm concentration ratio would and

Question

If Firms J, K, and L were to merge, the four-firm concentration ratio would and the Herfindahl Index would rise to 59 percent; rise to 1,212 rise to 60 percent; fall to 986 rise to 50 percent; rise to 1,062 not be affected; not be affected rise to 28 percent; rise to 10,000 The four-firm concentration ratio for this industry is 696 percent. 49 percent. 54 percent. 46 percent. This cannot be determined without further information. The Justice Department would consider this industry to be concentrated, because there are fewer than 15 firms in the industry. concentrated, because the top four firms together control more than 50 percent of the market share. unconcentrated, because there are more than 10 firms in the industry. moderately concentrated, because the Herfindahl index is between 1,000 and 1,800. unconcentrated, because the Herfindahl index is less than 1,000. The law of demand states that price and quantity demanded are independent. positively related, ceteris paribus. directly related, ceteris paribus. inversely related, ceteris paribus. Cross elasticity of demand is the percentage change in the quantity of a good divided by the percentage change in demanded; the price of the good supplied: the price of another good demanded; the price of another good supplied; the price of the good demanded; income

Explanation / Answer

32. The law of demand states, caterus peribus other things remaining constant the price of the commodity and quantity demanded are inversely related to each other. That is as price of a commodity falls, the demand rises and with increase in prices the demand falls.

33. Cross price elasticity is calculated as % change in quantity demanded for concerned commodity divided by the % change in price of the related goods like complements and substitutes. demanded, price of another good

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