In a market where there is a certain number of companies with their percentage of participation surprisingly specified: Pencil manufacturers Bic OfficeMax Derwent Faber-Castell Lápices S.A. Lapicitos S.A. % share 25% 20% 15% 15% 15% 10% a) Calculate the market concentration index in the pencil industry? Use Hirschamn-Herfindahl index. b) Which firms could merge in this market without it becoming a highly concentrate market? c) How should the concentration index be analyzed according to Hannah and Kay? (Ref: Desirable criteria of a concentration index)
In a market where there is a certain number of companies with their percentage of participation surprisingly specified: Pencil manufacturers Bic OfficeMax Derwent Faber-Castell Lápices S.A. Lapicitos S.A. % share 25% 20% 15% 15% 15% 10% a) Calculate the market concentration index in the pencil industry? Use Hirschamn-Herfindahl index. b) Which firms could merge in this market without it becoming a highly concentrate market? c) How should the concentration index be analyzed according to Hannah and Kay? (Ref: Desirable criteria of a concentration index)
Chapter1: Making Economics Decisions
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![In a market where there is a certain number of companies with their percentage of
participation surprisingly specified:
Pencil manufacturers
Bic
OfficeMax
Derwent
Faber-Castell
Lápices S.A.
Lapicitos S.A.
% share
25%
20%
15%
15%
15%
10%
a) Calculate the market concentration index in the pencil industry?
Use Hirschamn-Herfindahl index.
b) Which firms could merge in this market without it becoming a highly concentrated
market?
c) How should the concentration index be analyzed according to Hannah and Kay?
(Ref: Desirable criteria of a concentration index)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4286a02c-a52a-4152-b72b-501e0e0f24b2%2F8f2435c6-6353-42af-ae5f-5ddcdfe4fbd5%2Fytd37ca_processed.png&w=3840&q=75)
Transcribed Image Text:In a market where there is a certain number of companies with their percentage of
participation surprisingly specified:
Pencil manufacturers
Bic
OfficeMax
Derwent
Faber-Castell
Lápices S.A.
Lapicitos S.A.
% share
25%
20%
15%
15%
15%
10%
a) Calculate the market concentration index in the pencil industry?
Use Hirschamn-Herfindahl index.
b) Which firms could merge in this market without it becoming a highly concentrated
market?
c) How should the concentration index be analyzed according to Hannah and Kay?
(Ref: Desirable criteria of a concentration index)
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