QuestionMay 27, 2025

As a general rule oligopoly exists when the four-firm concentration ratio Multiple Choice equals the Herfindahl Index. yields a Herfindahl Index below 500 is 40 percent or more. is 50 percent or more.

As a general rule oligopoly exists when the four-firm concentration ratio Multiple Choice equals the Herfindahl Index. yields a Herfindahl Index below 500 is 40 percent or more. is 50 percent or more.
As a general rule oligopoly exists when the four-firm concentration ratio
Multiple Choice
equals the Herfindahl Index.
yields a Herfindahl Index below 500
is 40 percent or more.
is 50 percent or more.

Solution
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Answer

is 40 percent or more. Explanation 1. Identify the definition of oligopoly Oligopoly is a market structure characterized by a small number of firms that have significant market power. 2. Determine the four-firm concentration ratio threshold A four-firm concentration ratio of 40 percent or more typically indicates an oligopoly, as it shows that the top four firms control a substantial portion of the market.

Explanation

1. Identify the definition of oligopoly<br /> Oligopoly is a market structure characterized by a small number of firms that have significant market power.<br /><br />2. Determine the four-firm concentration ratio threshold<br /> A four-firm concentration ratio of 40 percent or more typically indicates an oligopoly, as it shows that the top four firms control a substantial portion of the market.
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