Homework Answers
Answer:-
The correct answer is Option 'B' = 0.63
Top Eight firm's ratio = 2×10.5+3×9+3×5 = 63
Concentration ratio = top Eight firm's ratio ÷ total ratio
= 63÷100
= 0.63
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Suppose an industry is made up of 22 firms. Two firms cach sell 10.5 percent of...
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.
ECON M/C An industry has two firms. The demand curve for the industry's output is given...
ECON M/C
An industry has two firms. The demand curve for the industry's output is given by p = 370 – 24, where q is the total industry output. Each firm has a constant marginal cost equal to 10. Suppose that one firm is the Stackelberg leader and the other firm is the Stackelberg follower. The leader will choose quantity Select one: a. 80 b. 120 O C. 150 O d. 90 O e. None of the above.
ECON M/C Q An industry has two firms. The demand curve for the industry's output is...
ECON M/C Q
An industry has two firms. The demand curve for the industry's output is given by p= 36 - 3q, where q is the total industry output. Each firm has a constant marginal cost equal to 6. Suppose that firms compete in Cournot style (quantity competition). Which of the following statements is correct? Select one: a. Firm 1's reaction function is q1 = 9 -0.592. b. Firm 1's reaction function is qı = 9 - 92. C. Firm...
A homogeneous good industry is composed of 3 firms. You are given the following information on...
A homogeneous good industry is composed of 3 firms. You are given the following information on output, price and marginal cost of each firm: q, 200 q2-500 93100 p- 50 41.7 c2 29.2 c3 45.8 Remember that for each firm where α, is the market share of firm i and η is the price elasticity of demand. a)Calculate the 2-firm concentration ratio. b)Calculate the Herfindahl index c) Calculate the number equivalent. d) Calculate the Lerner index of ach firm. e...
3) Suppose that an industry consists of two firms that produces a homogeneous product. Suppose that...
3) Suppose that an industry consists of two firms that produces a homogeneous product. Suppose that each firm decides how much to produce and assumes that its rival will not alter its level of production in response (Cournot Model). The industry demand equation is: P 145 5(Q1+ Q2) where Qland Q2 represents the output of Firm 1 and Firm 2, respectively. The total cost equations of the two firms are: TCF 3Q1 and TCF 5Q2 A, Calculate each firm's Best...
two firms in the same industry sell their product at 20$ per unit but one firm...
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question 4 please. 4. Suppose the wine industry is made up of many small identical firms....
question 4 please.
4. Suppose the wine industry is made up of many small identical firms. A represe tative firm's long-run cost function is C(yi) = y + y if yı > 0, C(v) = 0 otherwise. (a) Derive the representative firm's market supply curve for wine. (b) If the market demand for wine is yo = 1,140 - 10p, calculate the long-run competitive equilibrium of this industry (that is, indicate the equilibrium price. the amount of good y exchanged...
There are only two firms in an industry with demand curves q1 = 30 - P...
There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit maximizing price takers, each produces 20 units and sells them at a price of 10 so that each firm makes zero economic profits. Suppose the two firms form a cartel. While firm 1 produces one-half of the...
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...
Suppose a ten firm industry has total salos of $35 millon per year. The largest firm...
Suppose a ten firm industry has total salos of $35 millon per year. The largest firm have sales of $10 million, the third largest firm has sales of $4 milion, and the fourth largest firm has sales of $2 million If fifth through tenth largest firms combined have annual sales of $12 million, the four - firm concentration ratio for this industry is O A. 45.7 percent. OB. 65.7 percent. O C. 80 percent D. none fo the above.
ECON M/C
An industry has two firms. The demand curve for the industry's output is given by p = 370 – 24, where q is the total industry output. Each firm has a constant marginal cost equal to 10. Suppose that one firm is the Stackelberg leader and the other firm is the Stackelberg follower. The leader will choose quantity Select one: a. 80 b. 120 O C. 150 O d. 90 O e. None of the above.
ECON M/C Q
An industry has two firms. The demand curve for the industry's output is given by p= 36 - 3q, where q is the total industry output. Each firm has a constant marginal cost equal to 6. Suppose that firms compete in Cournot style (quantity competition). Which of the following statements is correct? Select one: a. Firm 1's reaction function is q1 = 9 -0.592. b. Firm 1's reaction function is qı = 9 - 92. C. Firm...
A homogeneous good industry is composed of 3 firms. You are given the following information on output, price and marginal cost of each firm: q, 200 q2-500 93100 p- 50 41.7 c2 29.2 c3 45.8 Remember that for each firm where α, is the market share of firm i and η is the price elasticity of demand. a)Calculate the 2-firm concentration ratio. b)Calculate the Herfindahl index c) Calculate the number equivalent. d) Calculate the Lerner index of ach firm. e...
3) Suppose that an industry consists of two firms that produces a homogeneous product. Suppose that each firm decides how much to produce and assumes that its rival will not alter its level of production in response (Cournot Model). The industry demand equation is: P 145 5(Q1+ Q2) where Qland Q2 represents the output of Firm 1 and Firm 2, respectively. The total cost equations of the two firms are: TCF 3Q1 and TCF 5Q2 A, Calculate each firm's Best...
question 4 please.
4. Suppose the wine industry is made up of many small identical firms. A represe tative firm's long-run cost function is C(yi) = y + y if yı > 0, C(v) = 0 otherwise. (a) Derive the representative firm's market supply curve for wine. (b) If the market demand for wine is yo = 1,140 - 10p, calculate the long-run competitive equilibrium of this industry (that is, indicate the equilibrium price. the amount of good y exchanged...
There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit maximizing price takers, each produces 20 units and sells them at a price of 10 so that each firm makes zero economic profits. Suppose the two firms form a cartel. While firm 1 produces one-half of the...
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 a ten firm industry has total salos of $35 millon per year. The largest firm have sales of $10 million, the third largest firm has sales of $4 milion, and the fourth largest firm has sales of $2 million If fifth through tenth largest firms combined have annual sales of $12 million, the four - firm concentration ratio for this industry is O A. 45.7 percent. OB. 65.7 percent. O C. 80 percent D. none fo the above.
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