Industry A has four firms. The largest firm in Industry A has more than 90 percent of the market share. Industry B also has four firms, but each of those four firms in Industry B has 25 percent of the market share. The Herfindahl-Hirschman index will be
A. larger for Industry B than Industry A, but the four-firm concentration will be the same.
В. tte same for both industries, but the four-firm concentration will be larger for industry Y than Industry A
C. larger for Industry Athan Industry B, but the four-firm concentration will be the same.
D. the same for both industries, but the four-firm concentration will be larger for industry Athan Industry B.
Homework Answers
Industry A has 4 firms, one firm has 90% market share. Let us assume other firms Market share is 4%,3%,3%.
HHI of industry A = 902 + 42 + 32 + 32 = 8100+16+9+9 = 8134
Industry B has four firms with equal share.
HHI = 252 + 252 + 252 + 252 = 625+625+625+625= 2500
Thus industry A has high HHI.
C. Larger for industry A but the four firm concentration would be same.
The firm concentration would be 100% in A as well as B. Since, each industry has only 4 firms.
Please contact if having any query thank you.
Add Answer to:
Industry A has four firms. The largest firm in Industry A has more than 90 percent...
An industry has five firms. Each of the four firms in the industry has a market...
An industry has five firms. Each of the four firms in the industry 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.
Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its...
Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its own market share is 30 percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is 13.33 percent. Then a sixth firm, located in Cleveland, Ohio, enters the same industry. The new firm captures 6.67percent market share, and the market share of one of the smallest three original incumbents declines...
Consider two industries, industry W and industry X. In industry W there are five companies, each...
Consider two industries, industry W and industry X. In industry W there are five companies, each with a market share of 20% of total sales. In industry X, there are six companies. One company has a 50% market share and each of the other five firms has a market share of 10%. a. Calculate the four-firm concentration ratio for each industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for each industry. c. What do the values of the two concentration measures imply about the...
Suppose that a company based in Dallas, Texas, confronts only four other rival firms. Its own...
Suppose that a company based in Dallas, Texas, confronts only four other rival firms. Its own market share is 37 percent, which ties it with the other largest producer and seller in the industry. The other three firms each have a 8.67 percent market share. What is the value of the Herfindahl-Hirschman index? The value of the Herfindahl-Hirschman index is O A. 2,963.5. B. 2,020.7. C. 2,738.0. D. 2,888.3.
The measures the share of industry sales controlled by the industry's largest firms. O Producer Price...
The measures the share of industry sales controlled by the industry's largest firms. O Producer Price Index O concentration ratio O Consumer Price Index O Herfindahl-Hirschman Index
The bicycle industry consists of seven firms. Firms 1, 2, 3, 4 each has 10% market...
The bicycle industry consists of seven firms. Firms 1, 2, 3, 4 each has 10% market share, and firms 5,6,7 each has 20% market share. Using the concentration measures, answer the following questions: (i) Calculate 4-firm concentration ratio for this industry. (ii) Calculate the Herfindahl-Hirschman index (HHI) for this industry. (iii) Now, suppose that firms 1 and 2 merge, so that the new firm will have a market share of 20%. 1) Calculate the post merger I(x) 2) Calculate the...
Find the Herfindahl Index and the Four-Firm Concentration Ratio for an industry with: Five firms—one with...
Find the Herfindahl Index and the Four-Firm Concentration Ratio for an industry with: Five firms—one with 60 percent of the market and others with 25, 10, 3, and 2 percent of the market, respectively. One firm with 60 percent of the market and four others with 10 percent each. Ten firms with 8 percent of the market each and four other firms have 5 each.
please answer asapp 29 of 48 (24 complete) This Question: 1 pt Suppose that a company...
please answer asapp
29 of 48 (24 complete) This Question: 1 pt Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its own market share is 38 percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is 8.00 percent Then a sbeth firm, located in Cleveland, Ohio, enters the same industry. The new firm captures 4.00percent market share and...
An industry has 10 firms, each with a market share of 10 percent. There is no...
An industry has 10 firms, each with a market share of 10 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. a. If 5 of the firms in the industry seek to merge, the Herfindahl index would change from 2,200 to 2,200. 600 to 1,000. 600 to 1,600. 1,000 to 2,200. b. This merger would be challenged, because of the value of the new Herfindahl index only. not...
1. An industry having a four-firm concentration ratio of 85 percent: a. is an oligopoly. b....
1. An industry having a four-firm concentration ratio of 85 percent: a. is an oligopoly. b. is monopolistically competitive. c. is a monopoly. d. approximates perfect competition. 2. Industry Y is dominated by four large firms that hold market shares of 15, 20, 30 and, 35. If all the firms in industry Y merged into a single firm, the Herfindahl Index would become: a. 100 b. 10,000 c. 100,000 d. 1,000
Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its own market share is 30 percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is 13.33 percent. Then a sixth firm, located in Cleveland, Ohio, enters the same industry. The new firm captures 6.67percent market share, and the market share of one of the smallest three original incumbents declines...
Suppose that a company based in Dallas, Texas, confronts only four other rival firms. Its own market share is 37 percent, which ties it with the other largest producer and seller in the industry. The other three firms each have a 8.67 percent market share. What is the value of the Herfindahl-Hirschman index? The value of the Herfindahl-Hirschman index is O A. 2,963.5. B. 2,020.7. C. 2,738.0. D. 2,888.3.
The measures the share of industry sales controlled by the industry's largest firms. O Producer Price Index O concentration ratio O Consumer Price Index O Herfindahl-Hirschman Index
please answer asapp
29 of 48 (24 complete) This Question: 1 pt Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its own market share is 38 percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is 8.00 percent Then a sbeth firm, located in Cleveland, Ohio, enters the same industry. The new firm captures 4.00percent market share and...
An industry has 10 firms, each with a market share of 10 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. a. If 5 of the firms in the industry seek to merge, the Herfindahl index would change from 2,200 to 2,200. 600 to 1,000. 600 to 1,600. 1,000 to 2,200. b. This merger would be challenged, because of the value of the new Herfindahl index only. not...
Most questions answered within 3 hours.
-
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 19 minutes ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 58 minutes ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 59 minutes ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 1 hour ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 1 hour ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 2 hours ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 1 hour ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 2 hours ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 2 hours ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 2 hours ago -
A marketing executive who knowingly authorizes a shoddy
defective product to be brought to market is...
asked 2 hours ago -
Write a psudocode:
1. Define a function called authorize that takes in 2 strings,
uName, and...
asked 2 hours ago