2. You were asked by your boss to compare the concentration of two different markets, market A and market B. Using all available data you present to your boss that CA = 0.50 and that C = 0.40. You also know that the concentration curves do not intersect at any point. Your boss is confused and tells you that since the two indices are based on a different number of firms, it's impossible to judge which one is more concentrated than the other. What do you respond?

2. You were asked by your boss to compare the concentration of two different markets, market A and market B. Using all available data you present to your boss that CA = 0.50 and that C = 0.40. You also know that the concentration curves do not intersect at any point. Your boss is confused and tells you that since the two indices are based on a different number of firms, it's impossible to judge which one is more concentrated than the other. What do you respond?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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