Percentage of sales Industry 1 Industry 2 Industry 3 Industry 4 Firm 1 55% 45% 25% 10% Firm 2 10% 35% 40% 60% Firm 3 25% 20% 35% 10% Firm 4 10% 20% According to the Herfindahl index, Multiple Choice Industry 3 is more concentrated than Industry 4. Industry 1 is more concentrated than Industry 2. Industry 1 is more concentrated than Industry 4. Industry 3 is more concentrated than Industry 2.
Q: Suppose that the distribution of sales within an industry is as shown in the following table: Firm…
A: The Herfindahl–Hirschman Index is an economic instrument used to measure the degree of competition…
Q: D 5 E 5 Refer to the data. If Firm B merged with Firm E, the industry's four-firm concentration…
A: *Answer:
Q: ACME corporation currently has a 20% market share in a $15 billion industry (measured by sales…
A: Market share is a measure that specifies the percentage of the market which is earned by a specific…
Q: Firm A's strategy Low price High price Firm A Profit = $81 Firm A Profit = $107 High price Firm B…
A: Game theory:Game theory is a hypothetical system for imagining social circumstances among contending…
Q: Consider a market with four firms. Suppose the first firm has a 39% market share, the second firm…
A: The HHI (Herfindahl-Hirschman Index) shows the market concentration and competitiveness. It is…
Q: Market shares of mat makers are in the table below. Firm Market Share (Percent) Made-to-last, Inc…
A: in HHI we consider the percentage share of each firm in an industry
Q: The 1994 market shares of the firms in the market for paper towels in the United States were:…
A: Given information In 1994 Market share for the paper towel in the US Company Market Share…
Q: Monotonicity Criterion and Plurality with Elimination A school board is going to hire a company to…
A: Introduction Monotonicity criterion helps to make voting system more democratic. Here three…
Q: Ten firms compete in a market to sell product X. The total sales of all forms selling the…
A: Total sales = $2 millionTop four firm’s sales are: $260,000, $220,000, $150,000 and $130,000The…
Q: True False Partnership structures are commonly used for the following type of businesses other than:…
A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session.…
Q: Given the information in the table, calculate the HHI in this industry. If yahoo and Bing were to…
A: An important economic indicator of competition and concentration in an industry that is used by…
Q: Consider an industry with four firms each having 12% of the market. The next four firms each have…
A: Herfindahl–Hirschman index is used to characterize the market as perfect competition, monopoly,…
Q: Caesars Entertainment (formerly Harrahis Entertainment) him feel valued as he gets a very special…
A: Customer relationship management (CRM) is a procedure that manages an organization's relationships…
Q: Classify these firms into adequate market structure and explain your classification. Sporting and…
A: In case of sporting and athletic goods there is a limited number of buyers, a specific section of…
Q: The table shows sales information for the firms in three different markets. Use the…
A: Herfindahl- Hirschman index is used to measure the concentration level of the market. Higher the…
Q: The four-firm concentration ratio in an industry is 70 percent. Total sales in the industry are $940…
A: CR4 is the sum of share of 4 largest firns and it is equals to 0.7. And total sale is $940 million.
Q: There are two firms that are considering entering a new market, and must make their decision without…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: There is only a single drug to treat Diwakar’s disease. This is an example of a Threat of…
A: Substitute goods are the goods which can be consumed in place of each other. These goods provide…
Q: Many firms price discriminate across customers by offering differentiated products (e.g., premium…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Sham transactions are: a) contracts in form, but not in substance. b) contracts in…
A: a) contracts in form, but not in substance.
Q: In order to retain (or create) an innovative culture ina larger, more established firm, which of the…
A: Innovative culture in an organization results in an increased productivity of labor in that…
Q: Industry A consists of four firms, each of which has an equal share of the market. Compute the…
A: The HHI (Herfindahl-Hirschman Index) is defined as a common measure of market concentration. It is…
Q: The major difference between monopolistic competition and monopoly is a. how the quantity of output…
A: A monopoly is the sole producer of a good in the market whereas in a monopolistic competitive market…
Q: Two coal companies can mine regular coal or green coal. Green coal is more expensive to mine but…
A: We are going to use the game theory concept to answer this question.
Q: When ABC Inc’s new CEO took the position, she emphasized that in order to rescue the company from…
A: Revenue is the total receipt that is the total amount of money which is received when doing business…
Q: B.A measure called Herfindahl-Hirschman Index is used to measure the degree of competition in an…
A: HHI is used by antitrust agencies to promote competition in the industry. It can be computed by…
Q: In a table, report proportion of the students based on mobile phone brands in your sample. Apple…
A: Below is the given table:
Q: Jsing the data in the table below, find the change in the Herfindahl-Hirschman index Research In…
A: post-sale market share of RIM xix will be (20+10) i.e. 30%
Q: Industry A consists of four firms, each of which has an equal share of the market. What is the…
A: Herfindahl - Hirschman index HHI = Sum of a square of market share. Suppose there are 'n' firms, and…
Q: Consider the Battle of the Sexes game illustrated here. Find all ESS’s.
A: ESS is a form of nash equilibrium, there can be one or multiple ESS strategies or none at all It is…
Q: You are the manager in a market composed of 20 firms, each of which has a 5.00 percent market share.…
A: We are going to calculate Herfindahl-Hirschman index (HHI) to answer this question.
Q: Select ALL that is FALSE. You may select more than one. Cournot competition behaviour can be…
A: The market structure that depicts a small number of firms who tend to realize that in deciding…
Q: ACME corporation currently has a 20% market share in a $15 billion industry (measured by sales…
A: Market share is the percentage of total sales generated by a firm in an industry. It can be…
Q: In a perfectly competitive market a) P=MR b) P>MR c)…
A: 16) In a perfectly competitive market, price always equals marginal revenue because increasing in TR…
Q: Ten firms compete in a market to sell product X. The total sales of all firms selling the product…
A: Total sales = GHS 1,000,000 Top four firm’s sales are: GHS175,000, GHS150,000, GHS125,000 and…
Q: The agencies generally consider markets in which the HHI is between 1,500 and 2,500 points to be…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: The Jakarta Post - Coordinating Maritime Affairs Minister Luhut Pandjaitan said he wants to push for…
A: In the answer, we will understand the different equilibrium quantity and prices set in the monopoly…
Q: The Foreign Corrupt Practices Act (FCPA) is U.S. legislation that O allows bribery in foreign…
A: The Foreign Corrupt Practices Act of 1977 is a federal legislation in the United States that forbids…
Q: Teletronics reported record profits of $100,000 last year and is on track to exceed those profits…
A: Given, The record profit of last year = $100,000, And currently, the company’s top manager is…
Q: Calculate the Herfindahl-Hirschman Index (HHI) for each of the following markets. Market A has two…
A: Here we calculate the herfindahl hirschman index and choose the correct option , so the calculation…
Q: $50 $0 $50 50 20 70 20 20 70 50 30 80 10 15 40 50 45 95 15 15 31.67 4 50 62 112 17 15.50 28 50 90…
A: In perfectly competitive market price is constant at all levels of output so it is equal to marginal…
Q: Ilsa Fast raises sheep and sells wool at the market. The wool she sells is identical to her…
A: The seller is producing an identical good in the market and there are many sellers in the market.
Q: Refer to the figure above. The competitive market player will have $____ of profits. A)0 B)100…
A: in a competitive market there are large number of firms producing identical products thus acting as…
According to the Herfindahl index,
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?Your niece owns a different type of chicken restaurant. She specializes in chicken and noodles and chicken pot pie. Her pot pie is the better seller. However, when its cold outside, the chicken and noodles is the better seller. She goes through about 100 chickens every two days. It takes about 60 chickens to make 600 pot pies. The other 40 chickens are used to make about 320 chicken and noodle dishes. When its cold outside it takes 70 chickens to meet the demand for chicken and noodles. Construct a production possibilities model that graphically illustrates this problem.Firm Market Share (%) A 20 B 20 C 20 D 20 E 10 F 10 Refer to the data. If all the firms in the industry merged into a single firm, the Herfindahl index would become Group of answer choices 100. 1,000. 10,000. 100,000.
- What is the approximate value of Annie’s brand/store compared to Sam’s for an otherwise equal apple tree? What is the estimate for market share for Annie if she sells Gal Apple Trees at $15.95 vs. Sam selling golden Delicious trees at $24.95.?Abdul Samand (Marketing) Q2A student in a managerial economics class calculated the four-firm concentration ratio and HHI for industries A and B. What is the proper conclusion she can draw from the following findings? Industry A Industry B Four-Firm C 0.9 1 HHI 3,200 2,500 Multiple Choice C4 is higher for industry A while the HHI is higher for industry B. This inconsistency must be due to a calculation error. The market power of firms in industry A is greater than that in industry B. Neither industry is perfectly competitive. Industry B is a monopoly.
- Luxottica owns 11 glasses and sunglasses companies. They also have deals to make glasses for at least 20 other brands. In 2017 Luxottica joined with Essilor, another major glasses company. (optional; the Adam ruins everything episode about Luxottica) The new company, EssilorLuxottica, is worth $81 billion and made $11 billion in sales in 2019. It is estimated they control at least 80% of the market for name-brand glasses. EssilorLuxottica makes the glasses and also owns the major retail sellers of glasses including LensCrafters and Sunglass Hut. In the case of LensCrafters, they own the largest chain of eye doctors that prescribe their products. Furthermore, they also own some of the major optical (eye) insurance companies. Effectively the only way to sell glasses in the USA is through retail stores owned by EssilorLuxottica. When Oakley became a popular brand of sunglasses Luxottica stopped selling them in their stores. Oakley could not sell their glasses and became worth so little as…Continuing with the Table of Certificate Programs, complete the calculations for Total Revenue by determining how many customers will purchase at each of the segments' bundle prices. Online Self Certifications for Social Work License Certification in Online Counseling Segment 1. 1000 Segment 2 Segment 3 Segment 4 4a) 4b) 4c) Customers 4d) 1000 1000 1000 $190 $150 $95 $35 TR Counseling a b с d Certification as a Group Home Counselor $70 $90 $160 $195 TR Group Home e f g h Bundle $260 $240 $255 $230 TR Bundle 4a 4b 4c 4dFirm Market Share (%) A 20 B 20 C 20 D 20 E 10 F 10 The Herfindahl index for the industry described in this table is Multiple Choice 80. 1,800. greater than it would be if there were only four firms in the industry. 1,600.
- To test the effectiveness of a two Web advertising agencies, you increase your ad purchase with agency A by 50% without changing your purchase through agency B. The referrals to your website from agency A increased by only 34% but the referrals from agency B fell by 21%. Why might the difference-in-difference estimate of the referrals per dollar through agency A be biased?CHALLENGING EXERCISES 14.7. PRICE COMPETITION WITH SEARCH COSTS. Twenty-five different stores sell the same product in a given area to a population of 2,000 consumers. Consumers are equally likely to first visit any of the 25 stores. Half of the consumers have no search costs and purchase at the lowest price so long as it is lower than $45. The other half is willing to buy one unit of the product up to a maximum of $70 and must incur a cost of $44 in order to find out about the prices charged by other stores. Each store can sell up to 90 units and has a unit cost of $25. (a) Show that, in equilibrium, there exist at most two different prices. (b) Show that, if there exist two different equilibrium prices, then the higher price must be 70. (c) Show that the following is an equilibrium: five firms set a price of 70 and the remaining 20 firms set a price of 45.City Condos Construction, CCC, obtained a loan to purchase city land for a premium condominium building. CCC paid a real estate analyst $100,000 to write a report on the market. The report stated-and CCC believes- that each condo will sell for $5 million and they will build 10 condos on each building floor. The city's condo market is competitive but limits condo towers to 6 floors only. Construction costs rise with the number of floors built. The construction costs are $5 million (or $5m) to build one floor, $20m for two floors, $45m for 3 floors, $80m for four floors, $125m for five floors, and $180m for six floors. (Notice these values are not per floor costs.) In addition to these costs, CCC pays $1m per year in interest on its loan which it cannot avoid and will pay overhead costs for construction of $5m per year which are incurred only when construction occurs. МС, АC, MR MC AC MR a $10 Condo Floors Given the cost and revenue information above, the numeric values for CCC's cost…