1) Consider the following hypothetical industries which are both comprised by 8 firms. Inindustry A sales are given by 1000, 800, 600, 600, 450, 200, 100, 100 and in industry Bby 2000, 500, 500, 200, 150, 150, 150, 100.(a) Calculate the five-firm concentration ratio for each industry.(b) Calculate each industry's H Index and the numbers equivalent. How can the latter beinterpreted?(c) Which industry do you think exhibits the most concentration?2) We defined the Lerner Index as LI = 1/µ where u is the absolute value of the elasticity ofdemand. We also showed that LI can be alternatively expressed as (P – MC)/P . Use theserelationships to show that LI can never exceed 1. What does this imply is the minimumdemand elasticity we should ever observe for a monopolist?3) Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period.Firm produces and sells 19 units per period, while firm 3's periodic production and salesare 15 units. The (inverse) market demand is estimated to be: P = 100 – Q, where Q = totaloutput = q1+ q2+ q3. Determine the market price and the elasticity of market demand aswell as the market share of each firm. Now use equation (3.5) to determine each firm'smarginal cost. What relation do you find between marginal cost and market share?4) Monopoly Air is on record with the local transportation authority arguing that there is nomarket need and no market room for an additional air service because even now, MonopolyAirplanes are flying with only 60 percent of the seats typically booked. Hence, it argues thatthe market is not large enough to sustain two efficient-sized air carriers.Evaluate this argument. Why might Monopoly Air flights be so under-booked? Does thisprove that there is no “market room" for a new competitor?5) Let the demand of an industry be described by Q(P)=48-P.(a) Calculate the market output and priçe under monopoly assuming that themonopolist's cost function is C(Q)=Q²/5+6Q+180. Find social welfare.(b) Consider a perfectly competitive industry with n firms in which each firm's costfunction is C(q)=2q< +6q+18. Find the aggregate supply curve and compare to themonopolist's marginal cost in (a).(c) Calculate the market output and price in the long run under perfect competitionassuming that each firm's cost function is in (b). Find social welfare and compare to themonopoly in (a).(d) Determine the Lerner index corresponding to the industries in (a) and (c).6) A monopolist with marginal costs of 4 sells to two different groups of consumers. Eachgroup has ten consumers. Individual demand of consumers in group A is given byQA(P)=20-P and for consumers in group B by QB(P)=16-P.(a) Suppose the monopolist cannot prevent arbitrage. Is price discrimination possible?Calculate the market output(s), price(s) and profits.(b) Suppose the monopolist can prevent arbitrage but does not know the type of consumers.Is price discrimination possible? Calculate the market output(s), price(s) and profits.(c) Suppose the monopolist can prevent arbitrage between groups but not within. Isprice discrimination possible? Calculate the market output(s), price(s) and profits.(d) Suppose the monopolist can identify consumers and prevent arbitrage both betweenand within groups. Is price discrimination possible? Calculate the market output(s),price(s) and profits.

"Since you have posted multiple questions, I can only answer the first question, rest you need to…

1) Consider the following hypothetical industries which are both comprised by 8 firms. In industry A sales are given by 1000, 800, 600, 600, 450, 200, 100, 100 and in industry B by 2000, 500, 500, 200, 150, 150, 150, 100. (a) Calculate the five-firm concentration ratio for each industry. (b) Calculate each industry's H Index and the numbers equivalent. How can the latter be interpreted? (c) Which industry do you think exhibits the most concentration?

1) Consider the following hypothetical industries which are both comprised by 8 firms. In industry A sales are given by 1000, 800, 600, 600, 450, 200, 100, 100 and in industry B by 2000, 500, 500, 200, 150, 150, 150, 100. (a) Calculate the five-firm concentration ratio for each industry. (b) Calculate each industry's H Index and the numbers equivalent. How can the latter be interpreted? (c) Which industry do you think exhibits the most concentration?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table lists the market shares of the eight firms in an industry. Market Shares of Eight Firms in an Industry Firm Market Share 1 2424 2 1818 3 1515 4 1212 5 1212 6 88 7 66 8 55 Calculate the four-firm concentration ratio for this industry. Enter your answer in the box below, and round to the nearest whole number if necessary.
Dear Tutor, Don't Say its Multiple Question. Here is one Question. You have to provide Complete question answer. Provide STEP BY STEP DETAILS CORRECT EXPLANATION. NEED URGENT
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The following table gives annual sales for firms in the gadget industry. Firm 1 ㅜ 2 3 4 All other firms Annual Sales ($ millions) 80 40 32 28 24 The four-firm concentration ratio in this industry is %. (Round your answer to two decimal places.)
Q² 4 PROBLEM (4) Firm A and Firm B with identical total costs TCA (QA) related goods and competing in prices (Bertrand competition), with demands: QA = 510 - 2PA + pв and Qв= 510 - 2pв+ pa, respectively. = and TCB (QB) Q² 4 are producing (a) Calculate the Bertrand-Nash equilibrium prices. (b) Calculate the prices they charge when A is the leader and sets its price first, anticipating B's best response and taking it into account (like in Stackelberg competition). (c) Calculate the prices they charge when they collude, in order to maximize sum of their profits.
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Question 1 Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 Beer (in %) 25 15 20 40 0 Chocolate (in%) 30 20 20 20 10 The table above presents the market shares of two industries in &. Total production in the beer industry amounts to 10'000 liter and the chocolate industry to 10 tons. a) Compute the CR4 concentration measure of each industry. b) Compute the HHI measure of each industry. c) Determine the Lerner Index in both markets: assume that in the beer market the cost of production is C=7'000+5*Q² (where Q is beer measured in liters) and the price per liter is 10 and that the chocolate market the cost of production is C=1'000+100*Q² (where Q is measured in tons) and the price per ton is 1'500.
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Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $6 per bag no matter how many bags are produced. Instructions: Enter your answers as a whole number. In part e, round your answer to two decimal places. a. If this firm keeps increasing its output level, will ATC per bag ever increase? No = Are there economies of scale at all levels of output? No ÷ b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge? $ per bag At that price, the size of the firm's profit would be $ million. Will the firm want to exit the industry? No c. You find out that if you set the price at $7 per bag, consumers will demand 10 million bags. At that price, the firm's profit or loss will be $ million. d. If consumers instead demanded 20 million bags at a price of $7, how big would the firm's profit or loss be? At that price, the size…