Introduction to Industrial Economics

1. What do the initials SIC stand for?
2. The market share of the top 5 firms in an industry is known as the 5 firm ........... .............?
3. Which of the following describes the Hirschman-Herfindahl index of concentration?
a) The market share of each firm in the industry.
 b) The market share of the top 5 firms in the industry.
 c) The sum of each firm's market shares squared.
 d) The market shares of the top 5 firms in the industry plus imports into the industry.
4. If the cross price elasticity of demand for a product is strongly positive we can assert that
a) this product is very substitutable.
 b) this product is a complement.
 c) this industry is monopolised by one firm
 d) this industry has no complements or substitutes.
5. Which of the following are not characteristics of a perfectly competitive industry?
a) many buyers and sellers.
 b) full information.
 c) high entry barriers.
 d) U-shaped cost curves.
6. Which of the following are not characteristics of a perfectly contestable market structure?
a) U-shaped cost curves.
 b) hit and run entry.
 c) zero sunk costs.
 d) few sellers.
7. What do the initials SCP stand for?