Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 27 percent, 26 percent, 23 percent, 11 percent, 7 percent, 4 percent, and 2 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? 0.87 percent b. What is the Herfindahl index for the hamburger industry in this town? 2124 O c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = 0.98 8 percent Herfindahl index = 5966|
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 27 percent, 26 percent, 23 percent, 11 percent, 7 percent, 4 percent, and 2 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? 0.87 percent b. What is the Herfindahl index for the hamburger industry in this town? 2124 O c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = 0.98 8 percent Herfindahl index = 5966|
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 11SQP
Related questions
Question
Please help me with the incorrect answers. Thabks! :)
![Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all
hamburgers sold): 27 percent, 26 percent, 23 percent, 11 percent, 7 percent, 4 percent, and 2 percent.
Instructions: Enter your answers as a whole number.
a. What is the four-firm concentration ratio of the hamburger industry in this town?
0.87
* percent
b. What is the Herfindahl index for the hamburger industry in this town?
2124
c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl
index?
Four-firm concentration ratio =
0.98
* percent
Herfindahl index =
5966](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7aa6fb5e-e9c6-4771-98ed-1bd1b002637f%2F896d5bc4-ab01-4a3e-b4d2-c89cdf236737%2Fa9vxz9c_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all
hamburgers sold): 27 percent, 26 percent, 23 percent, 11 percent, 7 percent, 4 percent, and 2 percent.
Instructions: Enter your answers as a whole number.
a. What is the four-firm concentration ratio of the hamburger industry in this town?
0.87
* percent
b. What is the Herfindahl index for the hamburger industry in this town?
2124
c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl
index?
Four-firm concentration ratio =
0.98
* percent
Herfindahl index =
5966
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Economics:](https://www.bartleby.com/isbn_cover_images/9781285859460/9781285859460_smallCoverImage.gif)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning