Question

Firm Market Share (%) A 50 B 35 C 8 D 4 E 2 F 1...

Firm Market Share (%)
A 50
B 35
C 8
D 4
E 2
F 1

Refer to the data. Suppose that firms in this industry split up such that there were 10 firms, each with a 10 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be

Multiple Choice

  • 100 percent and 10,000.

  • 40 percent and 40.

  • 1,000 percent and 400.

  • 40 percent and 1,000.

Homework Answers

Answer #1

If the firms in the given industry split up in the manner mentioned in the question then the following series will be obtained:

The correct option is 40 per cent and 1000 as shown in the image.

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
QUESTION 51 Firm A B C D E Market Share (%) 40 30 20 5 5...
QUESTION 51 Firm A B C D E Market Share (%) 40 30 20 5 5 Refer to the data. If Firm B merged with Firm C, the industry's four-firm concentration ratio would ________ and its Herfindahl index would ________. Select one: A. fall; rise B. remain the same; fall C. rise; rise D. remain the same; rise
An industry has five firms. Each of four firms has a market share of 22 percent...
An industry has five firms. Each of four firms has a market share of 22 percent and the last firm has a market share of 12 percent. Calculate the Herfindahl index and four-firm concentration ratio for the industry
A market has 5 firms. One firm has a market share of 50%, a second 35%,...
A market has 5 firms. One firm has a market share of 50%, a second 35%, and the other three 5% each. What is the Herfindahl index for this market? Based on your result, determine the intensity of price competition.
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...
Suppose that a small town has six burger shops whose respective shares of the local market...
Suppose that a small town has six burger shops whose respective shares of the local market are (as percentages of all hamburgers sold): 24%, 21%, 17%, 15%, 13%, 10%, a.What is the four-firm concentration ratio of the hamburger industry in this town? b. What is the Herfindahl index for the hamburger industry in this town? c. Assume that the top seller purchases the number three company (based market share) so that number one and number three firms are combined into...
Consider an industry that has eight firms with the following market shares: 30 20 15 10...
Consider an industry that has eight firms with the following market shares: 30 20 15 10 10 5 5 5 a. Calculate the four-firm concentration ratio for this industry. According to the calculated concentration ratio, what type of market is this? b. Calculate the Herfindahl-Hirschman Index for this industry.  According to the calculated Herfindahl-Hirschman Index, what type of market is this? c. The second largest firm decides to acquire one of the smallest firms in order to better compete with the...
In a five firm industry. The top four firms have market shares of 40%, 20%, 18%,...
In a five firm industry. The top four firms have market shares of 40%, 20%, 18%, and 17.3%,. Compute the Herfindahl-Hirschman index for the industry. Hint 1: You will need to calculate the market share of the fifth firm first. Hint Two: Write your answer to two decimal places. Hint Three: When calculating the HHI remember 10% market share is 10 not 0.10 .
Select the correct answer: The square of the percentage market share of each firm summed over...
Select the correct answer: The square of the percentage market share of each firm summed over the 50 largest firms is the (50-firm concentration ratio; Herfindahl-Hirschman Index). A (cartel; duopoly) is a group of firms acting together to limit output, raise price, and increase economic profit. In monopolistic competition there are a large number of firms producing (identical; differentiated) products. Game theory is the main tool that economists use to analyze (irrational; strategic) behavior.
A price-weighted index consists of stocks A, B, and C which are priced at $50, $35,...
A price-weighted index consists of stocks A, B, and C which are priced at $50, $35, and $15 a share, respectively. The current index divisor is 2.75. What will the new index advisor be if stock A undergoes a 5-for-1 stock split? Multiple Choice A. 0.40 B. 0.65 C. 1.00 D. 1.65 1.85
The widget industry is comprised of six firms of varying sizes. Firm 1 has 35 percent...
The widget industry is comprised of six firms of varying sizes. Firm 1 has 35 percent of the market. Firm 2 has 25 percent, and the remaining firms have 10 percent each. What is the Herfindahl-Hirschman index for the widget industry? Based on the U.S. Department of Justice merger guidelines described in the text, do you think the Justice Department would be likely to block a merger between firms 5 and 6? Explain using calculations.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT