Indiana -Bloomington B251 Final Exam QUESTIONS
2026/2027 COMPLETE & ACCURATE EXAM QUESTIONS
AND CORRECT VERIFIED ANSWERS WITH DETAILED
RATIONALES (100% CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION 2026 EDITION
|GUARANTEED PASS A+ |FULL REVISED EXAM
Four-firm concentration ratio
measures the market share of the four largest firms in an industry,
issue is it does not measure the market share of the other firm nor
the relative size of each firm in the industry
An FFCR close to 0% indicates a highly (perfectly) competitive
industry.
An FFCR between 0% and 40% indicates a moderately
(monopolistically) competitive industry.
An FFCR between 40% and 70% indicates moderate to high
(oligopoly) market concentration.
An FFCR between 70% to 100% indicates a very high market
concentration.
An FFCR of 100% indicates total (monopoly) market concentration.
,Herfindahl-Hirschamn Index, HHI
measures the degree of market competition and avoids the problem
of the four-firm concertation ratio
Measures the size of each firm relative to the industry by calculating
the sum of the squares of each firm's market share within the
industry
An HHI below 100 indicates a highly (perfectly) competitive industry.
An HHI between 100 and 1,500 indicates a moderately
(monopolistically) competitive industry.
An HHI between 1,500 and 2,500 indicates moderate market
concentration.
An HHI above 2,500 indicates a high (oligopoly) market
concentration.
An HHI of 10,000 indicates total (monopoly) market concentration.
short run
at least one input is fixed in producing a good or service
long run
all inputs are variable in producing a good or service
sunk costs
cost already incurred and cannot be recovered
, Production Function *defintion
the relationship between the output of goods and services and the
inputs used to produce the output
Production Function *formula
output/time period=some function of capital and labor inputs
Q=f(K,L)
Total Productivity
The total amount of goods and services produced by the inputs per
period
2026/2027 COMPLETE & ACCURATE EXAM QUESTIONS
AND CORRECT VERIFIED ANSWERS WITH DETAILED
RATIONALES (100% CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION 2026 EDITION
|GUARANTEED PASS A+ |FULL REVISED EXAM
Four-firm concentration ratio
measures the market share of the four largest firms in an industry,
issue is it does not measure the market share of the other firm nor
the relative size of each firm in the industry
An FFCR close to 0% indicates a highly (perfectly) competitive
industry.
An FFCR between 0% and 40% indicates a moderately
(monopolistically) competitive industry.
An FFCR between 40% and 70% indicates moderate to high
(oligopoly) market concentration.
An FFCR between 70% to 100% indicates a very high market
concentration.
An FFCR of 100% indicates total (monopoly) market concentration.
,Herfindahl-Hirschamn Index, HHI
measures the degree of market competition and avoids the problem
of the four-firm concertation ratio
Measures the size of each firm relative to the industry by calculating
the sum of the squares of each firm's market share within the
industry
An HHI below 100 indicates a highly (perfectly) competitive industry.
An HHI between 100 and 1,500 indicates a moderately
(monopolistically) competitive industry.
An HHI between 1,500 and 2,500 indicates moderate market
concentration.
An HHI above 2,500 indicates a high (oligopoly) market
concentration.
An HHI of 10,000 indicates total (monopoly) market concentration.
short run
at least one input is fixed in producing a good or service
long run
all inputs are variable in producing a good or service
sunk costs
cost already incurred and cannot be recovered
, Production Function *defintion
the relationship between the output of goods and services and the
inputs used to produce the output
Production Function *formula
output/time period=some function of capital and labor inputs
Q=f(K,L)
Total Productivity
The total amount of goods and services produced by the inputs per
period
