okIn 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 foreigncompetition, 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.TinterencesescMarket Share of Firms in IndustryIndustryAlphaBetaMcGrawHillQShort Answer Toolbar navigationKappaDeltaEpsilonBIVS-50---Di2Which industry has the most market power and which industry has the least?P@W#3E4Herfindahl indexR133252060255STAZA%2345622 14 12 10 925 25 15 1020 20 20 2010 10 10 1020 15 15 15 10& Search ProtectoPrayT6Y1.572Next >81OO*P|{d

( 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. t cences Market Share of Firms in Industry Industry Alpha Beta Kappa Delta Epsilon Herfindahl index Short Answer Toolber navigation 1 33 25 20 60 25 2 3 22 14 12 25 25 15 10 20 20 20 20 10 10 10 10 20 15 15 15 10 456 10 9 Which industry has the most market power and which industry has the least?

( 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. t cences Market Share of Firms in Industry Industry Alpha Beta Kappa Delta Epsilon Herfindahl index Short Answer Toolber navigation 1 33 25 20 60 25 2 3 22 14 12 25 25 15 10 20 20 20 20 10 10 10 10 20 15 15 15 10 456 10 9 Which industry has the most market power and which industry has the least?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 12P

See similar textbooks

Similar questions

Unsure which is the correct answers 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
Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms. Market Share Firms 2008 2013 A B C D E F G H I G 26% 21% 16% 10% 9% 7% 4% 3% 2% 2% 22% 23% 19% 9% 8% 7% 6% 4% 1% 1% Calculate the concentration ratio CR4 and the concentration ratio CR8 for 2008 and 2013 Calculate the Herfindahl-Hirschmann Index (HHI) for 2008 and 2013 Using the CR4, CR8, and HHI, analyze the evolution of the seller concentration in the industry. Has the industry become more or less concentrated? Using the CR4, CR8, and HHI, analyze the evolution of the potential market power of firms in the industry.
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
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:
K DOJ and FTC use the Hertindahl-Hirschman Index as a measure of concentration. How is this calculated? By O A. adding up the market shares of all firms in the industry, squaring this number and then dividing by the number of firms in the industry. OB. determining the market shares of the four largest firms in the industry, but unlike the concentration ratio, the Index includes sales in the United States by foreig OC. squaring the four - firm concentration ratio of the industry and dividing this number by the total number of firms in the industry. D. squaring the market shares of each firm in an industry and then adding up the values of the squares.
The table below shows revenue data for different firms producing frying pans. Use the given information to find the market share and squared value of the market share for each firm. Round each market share value before further calculations (no decimals). Firm - Acme Co Baluga, LLC Corky Co Dingo Inc Echo Co Fox Inc Revenue in $ 170.00 230.00 270.00 250.00 210.00 250.00 Market Share What is the Herfindahl Hirschman Index (HHI) for this market? A A - - A Market share squared ← A A A A
Use the information in the table below. Percentage of Sales Firm 1 Firm 2 Firm 3 Firm 4 Which of the industries is the most concentrated based on the Herfindahl Index? Industry type your answer... What is this industry's Herfindahl Index? type your answer... Industry 1 Industry 2 Industry 3 Industry 4 55% 45% 25% 10% 35% 40% 25% 20% 35% 10%- 10% 60% 10% 20%
Carrot Computers and its competitors purchase touch screens for their tablet computers from several suppliers. The six makers of touch screens have market shares of, respectively, 19 percent, 18 percent, 14 percent, 16 percent, 20 percent, and 13 percent. a. What is the Herfindahl index for the touch screen manufacturing industry? b. By how much would a proposed merger between the two smallest touch screen makers increase the Herfindahl index? Would the government be likely to challenge that proposed merger? c. If Carrot Computers horizontally merges with its competitor Blueberry Handhelds, by how much would the Herfindahl index change for the touch screen industry?
1. There are 10 firms in an industry, and each firm has a market share of 10 percent. The industry’s Herfindahl index is a. 10. b. 100. c. 1,000. d. 10,000. 2. In the small town of Geneva, there are five firms that make watches. The firms’ respective output levels are 30 watches per year, 20 watches per year, 20 watches per year, 20 watches per year, and 10 watches per year. The four-firm concentration ratio for the town’s watch-making industry is: a. 5. c. 90. b. 70. d. 100. 3. Which of the following best describes the efficiency of monopolistically competitive firms? a. Allocatively efficient but productively inefficient. b. Allocatively inefficient but productively efficient. c. Both allocatively efficient and productively efficient. d. Neither allocatively efficient nor productively efficient.
ACTIVITY 3 1. You were given the following capital balances of the partners of thePinnacle Trading: Pablo Php 10,000.00 Norman Php 20,000.00 Christian Php 30,000.00 The partners agreed to divide profit or loss in the ratio of their capital balances. If the partnership earned a profit of Php 30,000.00 for the year, compute the share of Pablo, Norman, and Christian to the profit of the business. a. Share of Profit for Pablo = Php b. Share of Profit for Norman = Php c. Share of Profit for Christian = Php %3D
In the world market for copper, there are two types of copper mines: Type 1 (primarily locatedin North America) and Type 2 (primarily located in Asia and South America). Each type of mineincurs five “buckets” of costs: (1) direct materials; (2) energy inputs (such as electricity andnatural gas); (3) shipping; (4) production labor; and (5) production and administrative overhead.Direct materials, energy inputs, and shipping services are purchased in competitive spotmarkets, and the total monthly costs that a firm incurs on these items vary in direct linearproportion to the quantity of copper produced in the mine during that month. If a mineproduces no copper in a particular month, it incurs no direct materials, energy, or shippingcosts.By contrast, the total monthly costs for production labor and overhead are volume- insensitive:the levels of these costs do not vary with the volume of production in the mine. Even if themine temporarily suspended operations for a month (i.e., produced…
For example, the lower left cell of the matrix shows that if Full Coop advertises and Lucky Bird does not advertise, Full Coop will make a profit of $14 million, and Lucky Bird will make a profit of $3 million. Assume this is a simultaneous game and that Lucky Bird and Full Coop are both profit- maximizing firms. If Lucky Bird chooses to advertise, it will earn a profit of $ advertise. million if Full Coop advertises and a profit of $ million if Full Coop does not If Lucky Bird chooses not to advertise, it will earn a profit of $ not advertise. million if Full Coop advertises and a profit of $ million if Full Coop does S If Full Coop advertises, Lucky Bird makes a higher profit if it chooses If Full Coop doesn't advertise, Lucky Bird makes a higher profit if it chooses Suppose that both firms start off by deciding not to advertise. If the firms act independently, what strategies will they end up choosing? Both firms will choose not to advertise. O Lucky Bird will choose not to…