Business, 30.03.2020 23:25 dukeem5270

Gibrats Law of Proportionate Growth says that the probability of growing by a certain percentage over a given period of time is independent of intial asset size. An industry govemed by such a law will exhibit a lognormal distribution for fim size. Why do we care?A. The predictions of Gibrat's Law perfectly match those of the Cournot oligopoly model. B. In the data, firm size for many mature industries appears to be lognormally distributed. C. In the data, smaller/younger firms' sizes appear to be lognormally distributed. D. In the data, firm size is roughly symmetrically distributed, and the lognormal distribution is perfectly flat.

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Gibrats Law of Proportionate Growth says that the probability of growing by a certain percentage ove...