1
AGEC 105 - chapter 9 Questions with Answers (100%
Correct Answers)
what are the general characteristics of market structure? Answer: 1)
number of firms & size distribution
2) product differentiation
3) barries to entry/exit
4) existing economic environment - conditions of supply & demand
the HHI is a measure of what? Answer: used to as a measure of market
concentration
how do you find the HHI Answer: by squaring each market share and
summing them
what is the range of HHI Answer: 0 - 10,000
over what level are HHI values considered highly concentrated
markets? Answer: 2,500
When the HHI is 10,000, the market is considered a _____? Answer:
monopoly
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, 2
what does the four-firm concentration ratio (CR4) measure? Answer:
the degree of concentration amount the four largest firms
at what concentration does the market stop being competitive?
Answer: over 40%
T/F: various agicultural markets have reached the point of not being
competitive Answer: true
four common barriers in imperfect competition are Answer: 1) capital
access and cost
2) absolute unit-cost advantage
3) preferential government policies
4) economies of scale
(C.A.P.E.)
what are the two theories of imperfect competition? Answer: 1) theory
of monopolistic competition - edward chamberlian, 1933
2) economics of imperfect competition - joan robinson, 1933
© 2025 All rights reserved
AGEC 105 - chapter 9 Questions with Answers (100%
Correct Answers)
what are the general characteristics of market structure? Answer: 1)
number of firms & size distribution
2) product differentiation
3) barries to entry/exit
4) existing economic environment - conditions of supply & demand
the HHI is a measure of what? Answer: used to as a measure of market
concentration
how do you find the HHI Answer: by squaring each market share and
summing them
what is the range of HHI Answer: 0 - 10,000
over what level are HHI values considered highly concentrated
markets? Answer: 2,500
When the HHI is 10,000, the market is considered a _____? Answer:
monopoly
© 2025 All rights reserved
, 2
what does the four-firm concentration ratio (CR4) measure? Answer:
the degree of concentration amount the four largest firms
at what concentration does the market stop being competitive?
Answer: over 40%
T/F: various agicultural markets have reached the point of not being
competitive Answer: true
four common barriers in imperfect competition are Answer: 1) capital
access and cost
2) absolute unit-cost advantage
3) preferential government policies
4) economies of scale
(C.A.P.E.)
what are the two theories of imperfect competition? Answer: 1) theory
of monopolistic competition - edward chamberlian, 1933
2) economics of imperfect competition - joan robinson, 1933
© 2025 All rights reserved
