Suppose that there are N = 10 firms in a market, and each of them have an equal share of the market, so that Si = 1/N= 1/10 for each firm. What is the value of the Herfindahl-Hirshman index in this market? 0.01 0.5 1 0.1

Suppose that there are N = 10 firms in a market, and each of them have an equal share of the market, so that Si = 1/N= 1/10 for each firm. What is the value of the Herfindahl-Hirshman index in this market? 0.01 0.5 1 0.1

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter25: Government And Product Markets: Antitrust And Regulation

Section25.1: Antitrust

Problem 2ST

See similar textbooks

Related questions

Q: Q1: What is the, HHI, Herfindahl-Hirschman Index for an industry where six companies each have a…

A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: Suppose there are N=8 hospitals in the market, and each of them has an equal share of the market…

A: HHI stands for Herfindahl-Hirschman Index, which is a measure of market concentration used in…

Q: If the Lerner Index of Market Power is larger for businesses than for individuals in the market for…

A: Answer) True

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: The following table lists the market shares of the eight firms in an industry. Market Shares for…

A: HHI = ∑[(Market share by firm i]2

Q: The solar-heating industry in a southwestern state is composed of just two firms. The market for…

A: Firm 1 profit : pi1 = 5Q1 - Q12 - 0.5Q22 + 12 Firm 2 profit : pi2 = 9Q2 - 1.5Q22 - Q12 + 20 When…

Q: 10. A A and B are two firms who have a simultaneous strategic problem modeled in this table: Q=3 Q=4…

A: Nash equilibrium in a game refers to a strategy in which both parties playing the game are not…

Q: The Herfindahl index for this industry is

A: The Herfindahl index is a measure of market concentration. In other words, Herfindahl Index is a way…

Q: Suppose an industry has 50 firms, each with an equal 2 percent share of the market. According to the…

A: We will use the formula to calculate Herfindhal Hirschman Index (HHI)

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: Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior…

A: The given value are as follows. The pre-merger HHI = 2,765. Market share of fiat = 12 %. Market…

Q: True/False 1. Suppose that an industry has 10 firms where the market shares are ordered from the…

A: In this 10 firms and their given market share data HHI index is measured as sum of squares of all…

Q: Consider an industry with 4 firms. All 4 firms and their yearly sales are listed in the table below:…

A: To calculate the Herfindahl-Hirschman Index (HHI) for this industry, we need to square the market…

Q: The table below shows revenue data for different firms producing cleaning products. Use the given…

A: The table below shows revenue data for different firm's producing cleaning products.

Q: A market is dominated by five firms, each with an equal share of market sales. What is the…

A: The Herfindahl-Hirschman Index (HHI) is a measure of market concentration used to assess the degree…

Q: Herfindahl index bounds. Suppose you only know the value of the market shares for the largest m…

A: The lower bound of the Herfindahl index can be calculated from the percentage of market share of…

Q: (1) What is the value of the Herfindahl-Hirshman index in this market? Please show all your…

A: introduction The capitalist economy always argues in favor of a free market system, where a large…

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: Firm Market Share 1 3030 2 2828 3 2323 4 1010 5 44 6 33 7 11 8 11 Calculate the…

A: The HHI {Herfindahl-Hirschman index} is described as a common or usual measure of the market…

Q: Q12 Assume the top six firms producing random access memory (RAM) in Canada comprising the industry…

A: Given: Market share of top 6 firms are : 21,17,16,11,9,6. Herfindahl index is given as: HI =…

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: Use the following table to calculate the Herfindal-Hirshman Index for the U.S. auto market. Would…

Q: You are a manager in a market composed of eight firms, each of which has a 12.5% market share. The…

A: HHI is a tool used to measure the concentration of market share among firms. It is obtained by using…

Q: Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior…

A: HHI stands for Herfindahl-Hirschman Index. It is a measure of market concentration used to analyze…

Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger…

A: here we calculate the Herfindahl index and complete the table so the calculation of the following…

Q: Let’s assume that in the state of California, there is an economic sector, where the firms have the…

A: The four-firm concentration ratio is a method used by industry experts and government authorities to…

Q: Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior…

A: The Herfindahl-Hirschman index calculates the market concentration and the degree of competitiveness…

Q: Firms Industry 1 Industry 2 Industry 3 Industry 4 1 65 70 35 50 2 15 15 35 50 3. 10 10 30 4 Based on…

A: Herfindahl-Hirschman indexes (HHI). It computes the competitiveness of the market. It is an addition…

Q: Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior…

A: The concept of HHI can be explained as a Index. It is a measure of market concentration used to…

Q: What is the, HHI, Herfindahl-Hirschman Index for an industry where six companies each have a market…

A: One of the best way to calculate the competitiveness of the market is the Herfindahl-Hirschman Index…

Q: The table below shows market share data for different firms producing desks. Market Share in % 15 18…

A: HHI is the sum of market share squared. When two companies merge , then the market share of both…

Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger…

A: while calculating concentration ratio we consider the firms who have larger market percentage share…

Question

Suppose that there are N = 10 firms in a market, and each of them have an equal share of the market, so that
Si = 1/N= 1/10 for each firm. What is the value of the Herfindahl-Hirshman index in this market?
0.01
0.5
1
0.1

Expert Solution

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Herfindahl index bounds. Suppose you only know the value of the market shares for the largest m firms in a given industry. While you do not possess sufficient information to compute the Herfindahl index, you can find a lower and an upper bound for its values. How?
The following table lists the market shares of the eight firms in an industry. Market Shares for Eight Firms in an Industry Firm Market Share 1 3030 2 2828 3 2323 4 1010 5 44 6 33 7 11 8 11 Calculate the Herfindahl-Hirschman Index (HHI) for this industry. Enter your answer in the box below, and round to the nearest whole number if necessary.
Use the following table to calculate the Herfindal-Hirshman Index for the U.S. auto market. Would the FTC approve a merger between Gm and Ford? Explain your response. The table is......... GM 19% Ford 17% Toyota 14% Chrysler 11%
Assume the top four firms comprising an industry have market shares of 25, 20, 15, and 10 percent. The remaining 30 firms each have market shares of 1 percent. The Herfindahl index for this industry is 100. 253. 876. 1380.
The table below shows market share data for different firms producing desks. Market Share in % 15 18 7 11 6 10 4 5 5 16 Firm Aardvark Inc Baluga, LLC Cran Inc Delta Co Echo Co Farriss Co Gum Drop Inc Hill Corp Indigo Corp Jackson Co What is the Herfindahl Hirschman Index (HHI) for this market? ← HHI 225 324 49 121 36 100 16 25 25 256 Suppose that Delta Co and Gum Drop Inc are considering a merger. What will the HHI be after this merger?
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%, 26%, 23%, 11%, 7%, 4%, and 2%. Instructions: Enter your answers as whole numbers. What is the four-firm concentration ratio of the hamburger industry in this town? 0%. What is the Herfindahl index for the hamburger industry in this town? If the top three sellers combined to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? The four-firm concentration ratio would be O%. The Herfindahl index would be
Industry A consists of four firms, each of which has an equal share of the market. Compute the Herfindahl-Hirschman index for the industry. Industry B consists of 10 firms, each of which has an equal share of the market. Compare the Herfindahl–Hirschman Indexes for the two industries. Now suppose that there are 100 firms in the industry, each with equal shares. What is the Herfindahl-Hirschman index for this industry? State the general relationship between the competitiveness of an industry and its Herfindahl-Hirschman index
.A measure called Herfindahl-Hirschman Index is used to measure the degree of competition in an industry. The HHI is the square of each firm’s market share summed over the firms in the industry. (Where a market share is the percentage of sales in the market accounted for by that firm). For example, if an industry contains only three firms and their market shares are 60%, 25%, and 15% then the HHI (by squaring each firm’s share and summing them) is 4450. Some economists classify the market structures according to HHI scores. An HHI below 1,500 indicates a strongly competitive market, between 1,500 and 2,500 indicates a somewhat competitive market, and over 2,500 indicates an oligopoly. Given the information in the table, calculate the HHI in this industry. If yahoo and Bing were to merge, what would the HHI be? Google 67% Yahoo 18 Bing 11 Ask 3 AOL 1
What is the, HHI, Herfindahl-Hirschman Index for an industry where six companies each have a market share of 15% and one company which has a market share of 10%?
Industry A consists of four firms, each of which has an equal share of the market. What is the Herfindahl–Hirschman index for the industry?
The image upload answer is not allowed please dear expert
Consider an industry with 4 firms. All 4 firms and their yearly sales are listed in the table below: Firms and Yearly Sales Firm Yearly Sales (in Millions) Jamco $104 Kami Inc $95 Lumperson $86 $69 Montour & Sons What is the Herfindahl-Hirschman Index (HHI) for this industry?