Question 3 (1 point)
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Suppose you are an analyst and your job is to determine whether the orange juice market is competitive. To do this, you compute the Herfindahl-Hirschman Index (HHI) and report it to your boss.
If there are only 5 producers of orange juice and each supplies 200,000 cartons of juice in equilibrium, what is the HHI Index for this industry?
6000
2000
4000
There is not enough information to calculate the HHI
Question 4 (1 point)
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Which of the following statements is TRUE? In an oligopoly,
firms always collude to keep prices high.
firms always engage in non-cooperative behavior
firms always produce some quantity strictly less than perfectly competitive and strictly greater than the monopoly quantity
multiple outcomes are possible depending on how firms interact with each other