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:
a bonus to Niki for financial maneuvers.
Explanation:
Answer:
INCORRECT.
In income summary account, all revenue accounts are closed by debiting them and crediting the income summary account. expense accounts are closed by crediting them and debiting income summary account. then on closing income summary account it shows debit balance if there is a net loss and it shows credit balance if there is a net income.
In the given case clever auto services has debit balance of $5,300 i,e it implies that clever auto services has loss .
Therefore above statement is wrong. It implies a loss of $5300 not the net income of $5,300.
Answer: I decreases; II decreases; III decreases
Explanation:
Debt Covenants becoming more restrictive means that less people want to borrow money. This shifts the demand curve to the left and this Decreases interest rates.
The Fed increasing money supply means that there is more money in the economy. This shifts the supply curve to the right thus having the effect of reducing Interests rates as there is more money available for loans.
Total Household Wealth increasing means that Households have less of an incentive to borrow money. This reduces the demand for interest rates so interest rates decrease.