The Herfindahl Index calculates how well this condition is being met in an industry.
The Herfindahl Index calculates how well this condition is being met in an industry. Prices and allocations must satisfy rationality and feasibility in Walrasian equilibrium, which is also called this kind of equilibrium. One type of this phenomenon involves a multitude of firms whose products are not perfect substitutes, which is known as this phenomenon's (*)  monopolistic variety. Another form of this state contains price-taking firms that are free to enter and exit the market. Antitrust laws promote, for 10 points, what economic state whose "perfect" form is characterized by many identical sellers who lower their price to marginal cost to attract buyers?
The Herfindahl Index calculates how well this condition is being met in an industry.
competition  [or monopolistic  competition ; or perfect  competition ; or  competitive  equilibrium]