5. Interpreting concentration ratios The following table shows the four-firm concentration ratios of various industries. Industry Computer and electronic parts Greeting cards Photo equipment and supplies Plastics and rubber product manufacturing Coffee and tea manufacturing Four-Firm Concentration Ratio. 19 80 78 10.5 52.5 Based on the data presented in the table, in which of the following industries are sales most concentrated among the four largest firms? Plastics and rubber product manufacturing O Greeting cards O Computer and electronic parts Photo equipment and supplies O Coffee and tea manufacturing

5. Interpreting concentration ratios The following table shows the four-firm concentration ratios of various industries. Industry Computer and electronic parts Greeting cards Photo equipment and supplies Plastics and rubber product manufacturing Coffee and tea manufacturing Four-Firm Concentration Ratio. 19 80 78 10.5 52.5 Based on the data presented in the table, in which of the following industries are sales most concentrated among the four largest firms? Plastics and rubber product manufacturing O Greeting cards O Computer and electronic parts Photo equipment and supplies O Coffee and tea manufacturing

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the concentration ratio?
3. There are two chicken fried steak restaurants operating in a small west Texas town: Cow Tipper Café and Steak to the Heart Diner. Once a month they have to send their new menus to the printer when they have to decide on whether or not to charge a high price or a low price for a chicken fried steak dinner. Once their menus are printed, they can't change their pricing. Since the two restaurants use separate printing companies, each restaurant's pricing decision remains secret until the printed menus are delivered. The payoff matrix for the restaurants is below; the first entry in each cell is Cow Tipper Café's daily profit and the second entry is Steak to the Heart Diner's daily profit. Cow Tipper Café High Price Low Price Steak to the Heart Diner Low Price $350, $300 $450, $400 High Price $500, $350 $375, $475 a. What market structure do these two firms operate in? Explain your answer. b. If Steak to the Heart Diner chooses a high price, what pricing option is better for Cow Tipper…
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Discussion Question 13-11 Network effects give Internet firms a boost with respect to first mover advantages. This is because with network effects O whichever firm's network becomes the largest will become the most valuable to potential customers and will therefore attract even more users. O only firms with access to proprietary technology can form a network. O networks can be networked to create even more traffic and profits. O the first internet firm to establish a network has the most influence over any regulation. When network effects are at play, an increase in the number of people using a given product will shift the demand curve to Oright and make it more elastic. O the right and make it more inelastic. O left and make it more inelastic. O left and make it more elastic. NOV 12 tv NA 10
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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1. The table below shows the percentage of sales held by the four largest firms in an industry. Company A B C D Market share (percent of sales) 12 10 5 3 a) Calculate this industry's four-firm concentration ratio. b) Is this industry competitive? why? c) What market type does it most likely represent?
The table below shows revenue data for different firms producing airplanes. Use the given information to determine the 4 Firm Concentration ratio. What is the Four Firm Concentration Ratio? % Is this market concentrated? OYes ONO Firm Acme Co Buzzy Co Cran Inc Dingo Inc Echo Co Farriss Co Revenue in $ Market Share in % 11 16 14 20 21 18 350 530 440 655 675 595
Q15: Refer to Figure 6-1 i Describe the area representing the deadweight loss to society due to monopoly. What curves is it between and/or above and/or below? Between what prices and/or quantities, if applicable? It may help to say why this is a loss to society.
6. Consider a duopoly in which inverse demand is given by P= 100-Q, where Pis the price and Q is aggregate output. The marginal cost of each firm is initially equal to 55 and there are no fixed costs. The firms compete by simultaneously setting quantities. (a) What is the equilibrium quantity of each firm, the equilibrium price and the profit of each firm? Now assume that one of the firms, firm 1, develops a new technology that reduces its own marginal cost to 25. (b) If firm 1 keeps this innovation for itself (so that the marginal cost of firm 2 is still 55), what will be the new equilibrium levels of output, price and profits of the two firms? What is the consumer surplus in the market? Do consumers benefit from the innovation?