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A measure of market power is: A. The Herfindahl-Hirschman index B. the Lerner index C.a concentration...

A measure of market power is:

A. The Herfindahl-Hirschman index

B. the Lerner index

C.a concentration ratio

D. the Dansby-willing index

E. All of the options

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Answer #1

A measure of market power is:

A. The Herfindahl-Hirschman Index.

Although the Lerner Index and Concentration ratio are also widely used to measure market power. But if you have an option of choosing any one among the given options then it will be the Herfindahl-Hirschman Index, because it is the most commonly used index among all. And if you are allowed to choose multiple options then he Herfindahl-Hirschman Index, the Lerner Index and Concentration ratio are the answers.

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