What is the approximate Herfindahl index and the four-firm concentration ratio?
Homework Answers
Since we do not know the total number of forms in the market so let's assume it to be 1% each for other firms bracket.
It will make easier to calculate the HHI
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What is the approximate Herfindahl index and the four-firm
concentration ratio?
Suppose the pizza market is...
What is the approximate Herfindahl index? Firm Market Share Pizza Hut 20.7% Domino's 17.0 Little Caesars...
What is the
approximate Herfindahl index?
Firm
Market Share
Pizza Hut
20.7%
Domino's
17.0
Little Caesars
6.7
Pizza Inn/Pantera's
2.2
Round Table
2.0
All others
51.4
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question Suppose the pizza market is divided as follows: Firm Pizza Hut Domino's Little Caesars Pizza Inn/Pantera's Round Table All others Market Share 20.7% 17.0 6.7 points 22...
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.
1.Calculate the Herfindahl index and the four-firm concentration ratio for the following industry; Use the following figure to answer questions 2-4. ms Market Stare Price MC ATC 2. Is the firm in...
1.Calculate the Herfindahl index and the four-firm concentration ratio for the following industry; Use the following figure to answer questions 2-4. ms Market Stare Price MC ATC 2. Is the firm in the figure a natural monopoly? Explain your answer 3. Will the firm in the figure earn profits if it produces Q, and charges P? Explain your answer. 4. Which quantity in the figure is consistent with profit regulation? With price regulation? Explain your answers.
1.Calculate the Herfindahl index...
All of the following are measures of market power except the: A) four-firm concentration ratio for...
All of the following are measures of market power except the: A) four-firm concentration ratio for an industry. B) Herfindahl-Hirschman Index. C) Minimum-Efficient Scale Index. D) Lerner Index.
Suppose four firms have market shares of 30%, 30%, 20% and 20%. What is the Herfindahl-Hirschman...
Suppose four firms have market shares of 30%, 30%, 20% and 20%. What is the Herfindahl-Hirschman Index for this market? 10000 2600 100 25 Question 18 What is the Herfindahl–Hirschman Index for a market with 100 firms, each with 1% market share? 10000 1000 100 1
Which of the following are measures of industry concentration? A Four-firm concentration ratio @ HH index...
Which of the following are measures of industry concentration? A Four-firm concentration ratio @ HH index C Consumer surplus (D Four-firm concentration ratio and HHI index Question 2 In perfect competition, which is NOT true? (A) Every firm has a small but perceivable market power. (B) There are a large number of firms. © Firms are price-takers (D) Firms produce homogenous goods
Market concentration Suppose that there are 10 firms in a market, and each of them has...
Market concentration Suppose that there are 10 firms in a market, and each of them has an equal market share. What is the value of the Herfindahl-Hirschman Index (HHI) in this market? Suppose instead that in this market one firm dominates such that it has a 90% market share, while the remaining nine firms each have an equal share of the remainder. What is the value of HHI in this case? (Hint! 10% of the market is divided among 9 firms, so each...
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.
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...
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...
What is the
approximate Herfindahl index?
Firm
Market Share
Pizza Hut
20.7%
Domino's
17.0
Little Caesars
6.7
Pizza Inn/Pantera's
2.2
Round Table
2.0
All others
51.4
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question Suppose the pizza market is divided as follows: Firm Pizza Hut Domino's Little Caesars Pizza Inn/Pantera's Round Table All others Market Share 20.7% 17.0 6.7 points 22...
1.Calculate the Herfindahl index and the four-firm concentration ratio for the following industry; Use the following figure to answer questions 2-4. ms Market Stare Price MC ATC 2. Is the firm in the figure a natural monopoly? Explain your answer 3. Will the firm in the figure earn profits if it produces Q, and charges P? Explain your answer. 4. Which quantity in the figure is consistent with profit regulation? With price regulation? Explain your answers.
1.Calculate the Herfindahl index...
Which of the following are measures of industry concentration? A Four-firm concentration ratio @ HH index C Consumer surplus (D Four-firm concentration ratio and HHI index Question 2 In perfect competition, which is NOT true? (A) Every firm has a small but perceivable market power. (B) There are a large number of firms. © Firms are price-takers (D) Firms produce homogenous goods
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...
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