Suppose that the most popular car dealer in your area sells 2.5 percent of all vehicles. Enter as a whole number. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area
Suppose that the most popular car dealer in your area sells 2.5 percent of all vehicles. Enter as a whole number. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that the most popular car dealer in your area sells 2.5 percent of all vehicles. Enter as a whole number.
If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area? (Please note that $625 is not the correct answer)
$____
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