Consider a Market Characterized by Two Firms That Set the Same

Multiple Choice

Consider a market characterized by two firms that set the same price in the market,P = $10.Total market demand is Q_T = 100 − 2P,of which the two firms share equally.Based on this information,we can conclude:

A) the HHI = 5,000 and the Rothschild index is 1.
B) the HHI = 2,500 and the Rothschild index is 2.
C) the HHI = 5,000 and the Rothschild index is 2.
D) None of the answers are correct.