AGEC 105 - chapter 9 Exam Questions
and Answers Graded A+
what are the general characteristics of market structure? - Correct 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? - Correct answer-used to as a measure of market
concentration
how do you find the HHI - Correct answer-by squaring each market share and
summing them
what is the range of HHI - Correct answer-0 - 10,000
over what level are HHI values considered highly concentrated markets? - Correct
answer-2,500
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, When the HHI is 10,000, the market is considered a _____? - Correct answer-
monopoly
what does the four-firm concentration ratio (CR4) measure? - Correct answer-the
degree of concentration amount the four largest firms
at what concentration does the market stop being competitive? - Correct answer-
over 40%
T/F: various agicultural markets have reached the point of not being competitive -
Correct answer-true
four common barriers in imperfect competition are - Correct 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? - Correct answer-1) theory of
monopolistic competition - edward chamberlian, 1933
2) economics of imperfect competition - joan robinson, 1933
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
and Answers Graded A+
what are the general characteristics of market structure? - Correct 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? - Correct answer-used to as a measure of market
concentration
how do you find the HHI - Correct answer-by squaring each market share and
summing them
what is the range of HHI - Correct answer-0 - 10,000
over what level are HHI values considered highly concentrated markets? - Correct
answer-2,500
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, When the HHI is 10,000, the market is considered a _____? - Correct answer-
monopoly
what does the four-firm concentration ratio (CR4) measure? - Correct answer-the
degree of concentration amount the four largest firms
at what concentration does the market stop being competitive? - Correct answer-
over 40%
T/F: various agicultural markets have reached the point of not being competitive -
Correct answer-true
four common barriers in imperfect competition are - Correct 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? - Correct answer-1) theory of
monopolistic competition - edward chamberlian, 1933
2) economics of imperfect competition - joan robinson, 1933
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
