The table represents the market share of the 10 largest steel producersMarket Share (%)Firm23,1116.8213,039.44857.566.47584110What is the four-firm concentration ratio for the steel industry represented in the table?four-firm concentration ratio:

The concentration ratio can be calculated by using the Hirschman Herfindal Index. The Hirschman…

Answered: The table represents the market share…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give step by step answer de student question Time Left : 01:58:56 Student question Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function: P=400−QA−QB where QA and QB are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are TCA=1,500+110QA+QA2 TCB=1,200+40QB+2QB2 Assume that the firms form a cartel to act as a monopolist and maximize total industry profits (sum of Firm A and Firm B profits). In such a case, Company A will produce units and sell at $ . Similarly, Company B will produce units and sell at $ . At the optimum output levels, Company A earns total profits of $ and Company B earns total profits of $ . Therefore, the total industry profits are $ . At the optimum output levels, the marginal cost of Company A is $ and the marginal cost of Company B is $ . The following…
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Do this problem using excel solver. Africa controls 80% of the world's lithium refining, a material needed for the production of lithium batteries in electric vehicles. The demand for lithium batteries is P = $20,000 - 2.5 Q, where Q is in tons and P is in $/ton. The long run marginal and average cost of production is constant at $2,000/ton. a) Assuming the monopoly model applies, determine price, quantity, and profit for Africa using excel solver b) Now assume new firms enter the lithium market, resulting in (perfect) competition. Determine the price, quantity, and profits, when the industry is in (long run) equilibrium using excel solver c) Finally, compare social welfare for the two cases, and determine deadweight loss using excel solver.
For the case of an industry that you know well, describe the extent to which firms in that industry are open to competition from international
Based on United States Census Bureau data for 2017, for the utilities (electricity and gas) industry the four firm concentration ratio (C4) is 16.2 percent and the Herfindahl-Hirschman index is 161.4. Why might the actual concentration, and therefore market power enjoyed by a specific utility company in a state, be greater than what is indicated by these numbers? These ratios are calculated for the entire country, and not for a specific city or state. Please give an explanation.
In India, Cisco’s market share of the Ethernet switch and router market is approximately 67 percent. Juniper and HP each have market shares of about 6.5 percent, and several other firms have somewhat smaller market shares. Draw a diagram showing the equilibrium in this dominant firm market. Identify the equilibrium price and the equilibrium quantity produced by the dominant firm and the competitive fringe firms. Illustrate what happens to the equilibrium price and the equilibrium quantity produced by the dominant firm and the competitive fringe firms if additional fringe firms enter the market
Firms Industry 1 Industry 2 Industry 3 Industry 4 1 65 70 35 50 2 15 15 35 50 10 10 30 4 Based on the Herfindahl-Hirschman index for each of the industries above, the industry with the most concentration of market power is: Industry 1 Industry 2 Industry 3 Industry 4
Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. PRICE (Dollars per gyro) 5.0 4.5 4.0 3.5 3.0 2.0 1.5 1.0 0.5 0 0 10 20 30 Competitive Market 40 60 QUANTITY (Gyros) 50 70 80 S=MC D 90 100 PC Outcome (?) Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obtain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly.…
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $6 per bag no matter how many bags are produced. Instructions: Enter your answers as a whole number. In part e, round your answer to two decimal places. a. If this firm keeps increasing its output level, will ATC per bag ever increase? No = Are there economies of scale at all levels of output? No ÷ b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge? $ per bag At that price, the size of the firm's profit would be $ million. Will the firm want to exit the industry? No c. You find out that if you set the price at $7 per bag, consumers will demand 10 million bags. At that price, the firm's profit or loss will be $ million. d. If consumers instead demanded 20 million bags at a price of $7, how big would the firm's profit or loss be? At that price, the size…
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The table below shows revenue data for different firms producing airplanes. Use the given information to determine the 4 Firm Concentration ratio. What is the Four Firm Concentration Ratio? % Is this market concentrated? OYes ONO Firm Acme Co Buzzy Co Cran Inc Dingo Inc Echo Co Farriss Co Revenue in $ Market Share in % 11 16 14 20 21 18 350 530 440 655 675 595

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The table represents the market share of the 10 largest steel producers Market Share (%) Firm 23,1 1 16.8 2 13,0 3 9.4 4 8 5 7.5 6 6.4 7 5 8 4 1 10 What is the four-firm concentration ratio for the steel industry represented in the table? four-firm concentration ratio: