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

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Jsing the data in the table below, find the change in the Herfindahl-Hirschman index if Microsoft sold its smartphone division to Research In Motion (RIM; also known as BlackBerry). Percentage Share of U.S. Smartphone Sales, 2050 Firm Percentage of sales Samsung Android 41 40% iPhone 43 30 RIM xix 20 Microsoft 35 10 Change in H-H index from sale:
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ok In the table below are data on five different industries and the market shares for each of the firms in the industry. Assume that there is no foreign competition, entry into the industry is difficult, and that no firm in each industry is on the verge of bankruptcy. In the column to the right of the table, calculate the Herfindahl index. Tint erences esc Market Share of Firms in Industry Industry Alpha Beta Mc Graw Hill Q Short Answer Toolbar navigation Kappa Delta Epsilon BIVS -50--- Di 2 Which industry has the most market power and which industry has the least? P @ W # 3 E 4 Herfindahl index R 1 33 25 20 60 25 5 STAZA % 23 456 22 14 12 10 9 25 25 15 10 20 20 20 20 10 10 10 10 20 15 15 15 10 & Search Protecto Pray T 6 Y 1.5 7 2 Next > 8 1 O O * P |{ d
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.)
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Suppose that three firms make up the entire wig manufacturing industry. One has a 50% market share, and the other two have a 25% market share each. The Herfindahl index of this industry is _____. a. 3,750 b. 1,000 c. 10,000 d. 5,000 e. 2,500 Mane Attraction, one of the firms with a 25% market share in the wig manufacturing industry, leaves the market. This would cause the Herfindahl index for the industry to _____. a. remain the same b. fall c. rise The largest possible value of the Herfindahl index is 10,000 because: a. an index of 10,000 corresponds to 100 firms with a 1% market share each b. an index of 10,000 corresponds to a monopoly firm with 100% market share c. an industry with an index higher than 10,000 is automatically regulated by the Justice Department
A firm has $2,100,000 in sales, a Lerner index of 0.57, and a marginal cost of $40, and competes against 1000 other firms in its relevant market.Instruction: Enter your responses rounded to two decimal places.a. What price does this firm charge its customers? $ b. By what factor does this firm mark up its price over marginal cost? $
The government raises taxes by Rs. 100 billion. If the marginal propensity to consumeis 0.6, what happens to the following – do they rise or fall? By what amounts? a) Public Savingb) Private Savingc) National Saving
The table below shows revenue data for different firms producing refrigerators. Use the given information to find the market share of each firm. The "other" row is comprised of a number of small firms. Round each value to 2 decimal points. SI Firm % Acme Co Baluga, LLC Cran Inc Delta Co Eagle Inc Fox Inc What is the Four Firm Concentration Ratio? Other Revenue in $ 245.00 595.00 105.00 170.00 725.00 515.00 990.00 Market Share in % ← A - ← A ←
Which of the following pairs of companies would be least likely to be examined together as part of competitive analysis? Select one: a. Home Depot and Lowes b. Boeing and Airbus e IBM and Microsoft d. XM and Sirius satellite radio

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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?