Question

Choose a good or service that is supplied by a small number of firms (e.g., automobiles)....

Choose a good or service that is supplied by a small number of firms (e.g., automobiles). Who are the leading firms and what are their market shares? Compute the concentration ratio and the HHI (show your work).

Please explain how both the ratio and HHI are computed.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Choose a good or service that is supplied by a small number of firms (e.g., automobiles)....
Choose a good or service that is supplied by a small number of firms (e.g., automobiles). Who are the leading firms and what are their market shares? Compute the concentration ratio and the HHI (show your work in your post).”
There is an industry with 5 firms. There is one large firm with 80% market share,...
There is an industry with 5 firms. There is one large firm with 80% market share, three medium-sized firms with 6% market share, and one small firm with 2% market share. Calculate the Herfindahl-Hirschman Index (HHI) for this industry. Please show your work. Is this industry either highly concentrated, moderately concentrated, or not concentrated? There is an industry with 5 firms. There is one large firm with 80% market share, three medium-sized firms with 6% market share, and one small...
Consider an industry that has five firms with the following market share percentages: 40, 20, 20,...
Consider an industry that has five firms with the following market share percentages: 40, 20, 20, 10, 10. 1. Calculate the four-firm concentration ratio for this industry. Show your work. 2. Calculate the Herfindahl-Hirschman index for this industry. Show your work. 3. Calculate the number equivalent for this industry. Show your work. 4. Would this industry be considered to be highly concentrated by the Department of Justice and the Federal Trade Commission? Why or why not? 5. Suppose there was...
Think of a good or service with which you are familiar and for which there has...
Think of a good or service with which you are familiar and for which there has been a recent change in quantity demanded because of a change (up or down) in price. What is the good or service? What is your best estimate of the original quantity demanded? New quantity demanded? (please explain your units carefully.) You don’t need to do research: these numbers can be a best “guess.” What is your best estimate of the original price? New price?...
The Herfindahl-Hirschmann Index (HHI) addresses which question that is not indicated by the concentration ratio? how...
The Herfindahl-Hirschmann Index (HHI) addresses which question that is not indicated by the concentration ratio? how market share is distributed by firms within the concentration ratio how market share is distributed across a larger number of firms the extent to which market dominance is being exercised by firms in an industry the extent to which government involvement is limited price setting by firms the extent to which the market is preventing price manipulation by firms Which of the following best...
An employee of a firm has a job where the employee can easily adjust the number...
An employee of a firm has a job where the employee can easily adjust the number of hours they work for the employer per year. The employee is currently payed $40 per hour and will work 2000 hours in 2017. The employer had a good year in 2017 and is considering two changes in the employee’s compensation for 2018. a) Suppose the employer decides to raise the employees wage to $45 per hour. Explain why it is unclear whether the...
1. Consider an economy that produces and consumes bread and automobiles. In the table below are...
1. Consider an economy that produces and consumes bread and automobiles. In the table below are data for two different years: Year 2010 Year 2025 Price of an automobile $50,000 $60,000 Price of a loaf of bread $10 $20 Number of automobiles produced 100 120 Number of loaves of bread produced 500,000 400,000 Using the year 2010 as the base year, compute the following: nominal GDP, implicit price deflator and the CPI. 2. Assume that GDP (Y) is 5,000. Consumption...
Oligopoly and Monopolistic Competition. Please show work. The local steel market has an inverse demand function...
Oligopoly and Monopolistic Competition. Please show work. The local steel market has an inverse demand function for a metric ton of steel: P = 1450 - Q Donald and Justin are the only two steel miners in the market who sell metric tons of steel. They both have a constant marginal and average cost of $100 per metric ton. Both farmers simultaneously determine the quantity of steel they ar going to bring to the market. They do not conger beforehand,...
A tough test for audit industry : With audit exemption here to stay, small accounting firms...
A tough test for audit industry : With audit exemption here to stay, small accounting firms must change. NOW that the Companies Act 2016 exempts certain private companies – mainly dormant and small ones – from having to appoint auditors, the audit industry should rise to the challenge by finding other ways to remain relevant to the SME sector. That’s the suggestion from the Companies Commission of Malaysia (CCM), the regulator that has the power to grant the exemptions. The...
Which of the following is most likely true of your business strategy if you decide to...
Which of the following is most likely true of your business strategy if you decide to open a small local theater? You will need to get the top movies to compete directly with the theater chains You will not be able to succeed due to barriers to entry You will likely look to run independent films or otherwise avoid directly competing with theater chains Barriers to entry will be your best chance of achieving economic success Antitrust laws will probably...