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PROBLEM 1: Firm Market share 40% 25% 10% 10% 10% 5% 1. In the table above,...
The table represents the market share of the 10 largest steel producers. Firm Market Share (%)...
The table represents the market share of the 10 largest steel producers. Firm Market Share (%) 1 23.0 2 19.0 3 15.0 4 10.4 5 8 6 7.5 7 6.4 8 5 9 4 10 1 What is the four‑firm concentration ratio for the steel industry represented in the table? Round your answer to the nearest tenth. four‑firm concentration ratio:
5) A firm’s market share is the quantity the firm sells, divided by the total market...
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...
Market share in the Widget industry Firm name Market share Big W 50 Widico 40 Widgotech...
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...
Market shares in the U.S. cigarette industry are as follows. Cigarette Company Market Share (Percent) Altria...
Market shares in the U.S. cigarette industry are as follows. Cigarette Company Market Share (Percent) Altria 50 Reynolds 35 Vector 5 Republic 4 three smallest companies each 2 Total 100 1. 1. Define the four-firm concentration ratio of an industry. Compute the four-firm concentration ratio for the cigarette industry. Show your computation. 2. Define the Herfindahl-Hirschman index (HHI). Compute the HHI for the cigarette industry. Show your computation. 3. The cigarette industry is often described as a “duopoly.” Explain...
Consider the tables displaying market share data for the largest firms in two industries. Suppose that...
Consider the tables displaying market share data for the largest firms in two industries. Suppose that there are 10 firms in the printer market and 20 firms in the microwave market. Printers Firm Market share (%) 1 30 2 25 Two statistics that are often used to assess market power 3 15 are the four-firm concentration ratio and the Herfindahl- 4 12 Hirschman Index (HHI). Given the data presented here, Microwaves only the can Firm Market share (%) be calculated....
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
Question 13 (1 point) Firm A B Market Share (%) 40 30 20 5 C D...
Question 13 (1 point) Firm A B Market Share (%) 40 30 20 5 C D 15 Refer to the data. The Herfindahl index for this industry is: O 95 0 1,000 O2,950 O2,925
FIRM MARKET SHARE (percent) Motorola 34 LG 26 Samsung 12 Nokia 10 Sanyo 8 Sony 10...
FIRM MARKET SHARE (percent) Motorola 34 LG 26 Samsung 12 Nokia 10 Sanyo 8 Sony 10 Assume the 6 companies listed in the table are the only manufacturers active in the Cell Phone market. Using the market shares provided calculate the HHI for the industry: Now calculate the HHI again assuming Motorola merges with Sony: Do you believe the Justice Department would allow that merger to happen? (yes or no) Which of the following mergers would the Department of Justice...
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...
Firm A Firm B Firm C Firm D 1 lamp $25 $25 $25 $40 2 lamps...
Firm A Firm B Firm C Firm D 1 lamp $25 $25 $25 $40 2 lamps $50 $45 $55 $80 3 lamps $75 $60 $90 $120 4 lamps $100 $70 $130 $160 The above table show the total cost of 4 different firms for producing up to 4 lamps. Which of the firms in the table experiences economies of scale in lamp production? Firm C Firm A Firm B Firm D
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...
Consider the tables displaying market share data for the largest firms in two industries. Suppose that there are 10 firms in the printer market and 20 firms in the microwave market. Printers Firm Market share (%) 1 30 2 25 Two statistics that are often used to assess market power 3 15 are the four-firm concentration ratio and the Herfindahl- 4 12 Hirschman Index (HHI). Given the data presented here, Microwaves only the can Firm Market share (%) be calculated....
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
Question 13 (1 point) Firm A B Market Share (%) 40 30 20 5 C D 15 Refer to the data. The Herfindahl index for this industry is: O 95 0 1,000 O2,950 O2,925
FIRM MARKET SHARE (percent) Motorola 34 LG 26 Samsung 12 Nokia 10 Sanyo 8 Sony 10 Assume the 6 companies listed in the table are the only manufacturers active in the Cell Phone market. Using the market shares provided calculate the HHI for the industry: Now calculate the HHI again assuming Motorola merges with Sony: Do you believe the Justice Department would allow that merger to happen? (yes or no) Which of the following mergers would the Department of Justice...
Firm A Firm B Firm C Firm D 1 lamp $25 $25 $25 $40 2 lamps $50 $45 $55 $80 3 lamps $75 $60 $90 $120 4 lamps $100 $70 $130 $160 The above table show the total cost of 4 different firms for producing up to 4 lamps. Which of the firms in the table experiences economies of scale in lamp production? Firm C Firm A Firm B Firm D
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