Answered: If market share for five cleaning…

If market share for five cleaning service companies are 8%, 13%, 6%, 25%, and 48%, the Herfindahl-Herschman (HHI) index would be 3198 2304 0100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…
Use for questions 4 -6: The Coolidge Corporation is the only producer of a particular type of laser (i.e., a monopoly market). The demand and marginal for its product are revenue curves QD 8,300-2.1P P 3952.381 -0.4762QD MR 3952.381 -0.9524 Qp Demand curve Inverse Demand or Price Curve Marginal Revenue Curve and its total cost function is TC 2,200 480Q+20g2 MC 48040Q where P is price (in dollars), TC is total cost (in dollars), and Q is monthly output.If this number were produced and sold, what would be the firm's monthly profit? а. II $144,992.29 b. II $31,950 C. IT $145,012.74 = d. П - $0
From the following problem, how to get the 7150?
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?
OC makes and sells an executive game for two distinct markets in which it currently has a monopoly. The fixed costs of production per month are $20,000, and variable costs per unit produced, and sold, are $40. The monthly sales can be thought of as X, where X = X1 + X2, with X1 and X2 denoting monthly sales in their respective markets. Detailed market research has revealed the demand functions in the markets to be as follows, with prices shown as P1 and P2: Market 1: P1 = 55 - 0.05X1 Market 2: P2 = 200 - 0.2X2 The management accountant believes there should be price discrimination; the price is currently $50 per game in either market. Required: a) What is the optimum price to charge in Market 1? b) What is the optimum quantity to produce in Market 2? c) The following statements have been made about price discrimination: 1) Price discrimination should be used if a business wishes to discourage new entrants into a market. 2) Price discrimination can be difficult to implement in…
Problem 08-16 (algo) You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after the sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q=1,000 - 4P, and its weekly cost of producing computers is C(Q) = 2,000 + 2Q². If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? Instructions: Round your response to the nearest whole number. Quantity:…
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Question B5 Happy Bubble Tea, Inc., has been granted a restrictive licensing and operates a chain of bubble tea stalls in Country A. Happy Bubble Tea, Inc. has its inverse demand function of P = 40 -0.004Q, with both its marginal cost and average total cost of $16 per cup under the existing operation. (a) With the aid of a diagram, calculate the profit-maximising level of output and price and profit. (b) The license of Happy Bubble Tea is going to be expired, what impact do you think this will have on the market for bubble tea and Happy Bubble Tea's profits? (c) What procurement method will you suggest Happy Bubble Tea to purchase the tea bags it used for making its bubble tea from its suppliers? Explain.
Marryweather Ltd. is a company that sells machines in the US and the EU. The inverse demand functions for the two markets are given as Pus = 10 – Yus and pgu = 6 - Yev. respectively. The machines for both markets are manufactured in Poland with a fixed % marginal cost of $2 and sold to clients only through its online retail stores (assume the online stores are affiliates of the company and that the profits are directly recorded by Marryweather, Ltd.). Due to its unique patented technology, the company is a monopoly in both markets. 1. Assume, instead of the exclusive territorial agreements, Marryweather, Ltd. has one global retail agreement with its online vendor that sells to both markets. Drawing a diagram (with the proper labels) show the combined market demand and marginal revenue. What is the price? What is the total profit? How many machines does the company sell in each market? 2. If Marryweather, Ltd. could perfectly price discriminate in the combined market from part (b), what…
There are two ma jor producers of corncob pipes in the world, both located in Herman, Missouri. Suppose that the inverse demand function for comcob pipes is described by p = 120 4q where q is total industry output and suppose that marginal costs are zero. What is the Cournot reaction function of firm 1 to the output, q2, of firm 2? (a) 120-4q22
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