Consider an industry with 4 firms. All 4 firms and their yearly sales are listed inthe table below:Firms and Yearly SalesFirmYearly Sales (inMillions)Jamco$104Kami Inc$95Lumperson$86$69Montour & SonsWhat is the Herfindahl-Hirschman Index (HHI) for this industry?

To calculate the Herfindahl-Hirschman Index (HHI) for this industry, we need to square the market…

Answered: Consider an industry with 4 firms. All…

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 Herfindahl index for 5 equal firms is 2000 and then a merger occurs between two of the firms and the index grows to___________________________________?
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Is there incentive for these companies to collude on price? Why or why not? (Hint: When I say incentive, I mean, is there a benefit involved. There may still be a large cost involved, so it may not be worth it, but as long as there is a benefit, there is an incentive.)
The table below shows recent worldwide market shares of producers of inkjet printers: Firm Brother Canon Dell Share of Worldwide Market Sales 4% 16 5 19 41 13 Epson Hewlett-Packard Lexmark Samsung Other 1 The value of the Herfindahl-Hirschman index for the industry is. (Enter your response as a whole number.)
Industry A is composed of three firms. One has an 80% market share, and the other two have a 10% share each. The Herfindahl index for this industry is:
Q6-What type of Competition exists in the following industry? a) K Electric in Karachi b) Getz pharmaceutical company c) Pakistan Railways d) ARY news channel e) Shaheen Airline
QUESTION 7 Suppose two firms (X and Y) want to merge together. X currently controls 50.59% of the market, and Y currently controls 35.96% of the market. If X and Y merge, by how many points will the HHI increase? with X and Y separate) Hint this is the value of (HHI with X and Y merged) - (HHI Round your answers to two (2) decimal places if necessary
In a certain region, there are four major healthcare providers: A HealthCare, B CarePlus, C MedWell, and D LifeCare. The market shares of these providers in terms of patient visits are as follows: A HealthCare: 35% B CarePlus: 25% C MedWell: 20% D LifeCare: 20% Calculate the Herfindahl-Hirschman Index (HHI) for the healthcare provider market in this region. Is this market considered concentrated or competitive according to the HHI interpretation?
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Firms Industry 1 Industry 2 Industry 3 Industry 4 1 65 70 35 50 2 15 15 35 50 10 10 30 4 Based on the Herfindahl-Hirschman index for each of the industries above, the industry with the most concentration of market power is: Industry 1 Industry 2 Industry 3 Industry 4
An industry has the following market shares: 30% 20% 10% 5% What is the Pre-merger index? What is the post-merger index? What is the increase or decrease in the index after the merger? Should a merger between the 1st and 3rd largest firms be allowed based on the Herfindhal Index? Why or why not
The Vaughan-Basset Furniture Company was a large American manufacture of wooden bedroom furniture. However, the firm was driven out of the market in the 1990s as a result of the dumping of furniture by Chinese firms. Vaughan-Basset filed for bankruptcy, closed its doors, and never returned to operation. O True O False

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Consider an industry with 4 firms. All 4 firms and their yearly sales are listed in the table below: Firms and Yearly Sales Firm Yearly Sales (in Millions) Jamco $104 Kami Inc $95 Lumperson $86 $69 Montour & Sons What is the Herfindahl-Hirschman Index (HHI) for this industry?