Suppose that a small town has six burger shops whose respective shares of the local market are (as percentages of all hamburgers sold): 26%, 20%, 18%, 14%, 12%, 10%, Assume that the largest producer now purchases the third largest firm (based market share) so that this new combined firm has the same market share as old firm 1 and old firm 3 combined. Compute the new third-firm concentration ratio and to the new HHI?
Suppose that a small town has six burger shops whose respective shares of the local market are (as percentages of all hamburgers sold): 26%, 20%, 18%, 14%, 12%, 10%, Assume that the largest producer now purchases the third largest firm (based market share) so that this new combined firm has the same market share as old firm 1 and old firm 3 combined. Compute the new third-firm concentration ratio and to the new HHI?
Chapter1: Making Economics Decisions
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Suppose that a small town has six burger shops whose respective shares of the local market are (as percentages of all hamburgers sold): 26%, 20%, 18%, 14%, 12%, 10%,
Assume that the largest producer now purchases the third largest firm (based market share) so that this new combined firm has the same market share as old firm 1 and old firm 3 combined. Compute the new third-firm concentration ratio and to the new HHI?
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