Asked by Aaron Morris on May 13, 2024
Verified
(Last Word) In the Internet search market:
A) Yahoo,Bing,and Google have roughly equal market shares.
B) the Herfindahl index value is 10,000.
C) Google holds about 70 percent of the market,while Bing and Yahoo together comprise about 28 percent.
D) government subsidies ensure that search engines are provided at no cost to all Internet users.
Herfindahl Index
A measure of the size of companies in relation to the industry and an indicator of the amount of competition among them.
Market Shares
The proportion of total sales or revenue in a market accounted for by a particular company, indicating its dominance in the market.
- Develop an understanding of the distinct kinds of market systems, including monopoly, oligopoly, monopolistic competition, and utter competition.
- Understand the significance of Herfindahl index in measuring market concentration.
Verified Answer
MG
Matthew GrattonMay 14, 2024
Final Answer :
C
Explanation :
According to the given information, Google holds about 70 percent of the Internet search market, while Bing and Yahoo together comprise about 28 percent. Therefore, option C is the correct answer. Options A and D are incorrect as they contradict the given information, and option B is irrelevant to the question.
Learning Objectives
- Develop an understanding of the distinct kinds of market systems, including monopoly, oligopoly, monopolistic competition, and utter competition.
- Understand the significance of Herfindahl index in measuring market concentration.
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