Herfindahl Index = (40)^2 + (30)^2 + (20)^2 + (5)^2 + (5)^2
Herfindahl Index = 1600 + 900 + 400 + 25 + 25 = 2950
Therefore answer is option c) 2950
31 of 50 (36 complete) This Question: 1 pt Suppose that the distribution of sales within an industry is as shown in the following table: Share of Total Market Sales 15 14 12 Firm 10 10 13 100% All others Total There are 13 "All others" in the industry in the above table, each of which has a share of sales equal to 1 percent. The value of the Herfindahl-Hirschman Index for this industry isEnter your response as a whole...
Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and 10 percent, respectively. The Herfindahl index for the industry is Multiple Choice A) 1,900. B) 2,400. C) 90. D) 10,000.
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
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...
Market share in the Widget industry Firm name Market share Big W 50 Widico 40 Widgotech 9 Widgette 1 Using the market shares in the table above, if Big W wants to buy Widgette, the Federal Trade Commission will probably approve the merger because the industry is moderately concentrated and the increase in the Herfindahl-Hirschman index (HH) is small enough. o block the merger because the industry is highly concentrated (HHI exceeds 2,500) and the increase in the HHI is...
5) A firm’s market share is the quantity the firm sells, divided by the total market quantity. In an industry there are 11 firms with market shares: 10%, 20%, 15%, 5%, 30%, 10%, and five additional firms with 2% each. a) The I4 index is defined as the sum of shares of the largest 4 firms in the market. What is the I4 index of market concentration for this market? The I8 index is the sum of the shares of...
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
Calculate the market share for each firm. Does there appear to be a
monopoly question if firm 1 and firm 2 merge? How do you know?
Question 4: Identifying Monopolies: HH Index, Lerner Index and M (10 Points) a) Below is data from an industry of 5 companies. Marginal Cost Firm total sales 100,000 Price 100 Firm 1 0 63 Firm 2 60,000 100 97_ Firm 3 9,000 100 870 Firm 4 7,000 100 100 Firm 5 1,200 100 100...
PROBLEM 1: Firm Market share 40% 25% 10% 10% 10% 5% 1. In the table above, the four-firm concentration ratio is: a. 40% b. 65% c. 85% d. 100% 2. In the table above, the HHI index is:
18. (Figure: Increasing Costs) Price $40 Firm 1 30 MC AC 20 18 15 10 5 10 15 20 25 30 35 40 45 50 Quantity Firm 2 Price $40 30 MC AC 20 18 15 10 2 4 6 8 10 12 14 16 18 20 Quantity Refer to the figure. If an industry consists of two firms, Firm l and Firm 2, as shown in the diagram, the industry's quantity supplied at a price of S15 is industry's...