Question

14. In recent times, the US economy has come to rely much more heavily on R&D, which is funded by __?

15. A market has 19 firms, 17 of which have 4% market share. The remaining two have 31% and 1% market share. Calculate the HHI.

16. which of the below is the best regulatory option for the government to take with respect to this natural monopoly?

Question 14 In recent times, the U.S. economy has come to rely much more heavily on R&D, which is funded by Select the correct answer below: O industry O the government O universities and colleges O nonprofits B FEED

Answer 1

14) the correct answer is industry. This has only been a recent observation where industry itself is providing funds for the research and development for most of the activities

15) HHI is the squared sum of market share. Find this index value as 31^2 + 17*(4^2) + 1^2 = 1234

16) first option is correct because it will result in zero economic profit for the Monopoly. second option is not feasible because at this output level there is economic loss which will force the Monopoly to leave the market in the long run.