Instant Industry Identification
Quantitative Finance
Level
2
Read the below descriptions of five hypothetical industries.
- Industry A: The demand curve for the firms in this industry is the same as their average revenue curve.
- Industry B: This industry has a Herfindahl index of 10,000.
- Industry C: The firms in this industry engage in non-price competition, but there are relatively few barriers to entry into this industry.
- Industry D: This industry can make an economic profit over the long run.
- Industry E: The firms in this industry are prohibited by anti-trust laws from price fixing.
Which one of these choices correctly identifies the market structure of one of these industries?
C is perfectly competitive
None of these are correct
E is perfectly competitive
B is an oligopoly
D is a monopoly
A is monopolistically competitive
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