Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 15.1, Problem 6Q
To determine
Find the highest Herfindahl index.
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Check out a sample textbook solutionStudents have asked these similar questions
How do we measure a four-firm concentration ratio? What does a high measure mean about the extent of competition?
What is the concentration ratio?
The following table presents information on the production of five firms
that produce all of the output in an industry.
Firm
A
B
с
D
E
Output (units)
900
900
900
100
100
Instructions: Round your answers to two decimal places.
a. What is the four-firm concentration ratio for this industry?
b. What is the Herfindahl-Hirschman Index for this industry?
Chapter 15 Solutions
Microeconomics
Ch. 15.1 - Prob. 1QCh. 15.1 - Prob. 2QCh. 15.1 - Prob. 3QCh. 15.1 - Prob. 4QCh. 15.1 - Prob. 5QCh. 15.1 - Prob. 6QCh. 15.1 - Prob. 7QCh. 15.1 - Prob. 8QCh. 15.1 - Prob. 9QCh. 15.1 - Prob. 10Q
Ch. 15 - Prob. 1QECh. 15 - Prob. 2QECh. 15 - Prob. 3QECh. 15 - Prob. 4QECh. 15 - Prob. 5QECh. 15 - Prob. 6QECh. 15 - Prob. 7QECh. 15 - Prob. 8QECh. 15 - Prob. 9QECh. 15 - Prob. 10QECh. 15 - Prob. 11QECh. 15 - Prob. 12QECh. 15 - Prob. 13QECh. 15 - Prob. 14QECh. 15 - Prob. 15QECh. 15 - Prob. 16QECh. 15 - Prob. 17QECh. 15 - Prob. 18QECh. 15 - Prob. 1QAPCh. 15 - Prob. 2QAPCh. 15 - Prob. 3QAPCh. 15 - Prob. 4QAPCh. 15 - Prob. 5QAPCh. 15 - Prob. 1IPCh. 15 - Prob. 2IPCh. 15 - Prob. 3IPCh. 15 - Prob. 4IPCh. 15 - Prob. 5IPCh. 15 - Prob. 6IPCh. 15 - Prob. 7IP
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- what is the Four-firm concentration ratio (CR4)? what is the Herfindahl-Hirshman Index (HHI)? and how are they different?arrow_forwardBased on this information, the four-firm concentration ratio is?arrow_forwardCalculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in this market. Sales (millions of dollars) 7.4 7.1 6.8 6.2 5.3 4.2 What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations. Retailer Dap American Jaybird Expressive LA & Company Forever 22 Limitless four-firm concentration ratio: 28arrow_forward
- The following table lists the market shares of the eight firms in an industry. Market Shares of Eight Firms in an Industry Firm Market Share 1 5050 2 1515 3 1515 4 1010 5 55 6 33 7 11 8 11 Calculate the four-firm concentration ratio for this industry. Enter your answer in the box below, and round to the nearest whole number if necessary.arrow_forwardSuppose the industry has six firms. Four firms have sales of Php 10 M each, while the other two have sales of Php 5 M each. The four firm concentration ratio is” A. 0.90 B. 0.80 C. 0.70 D. 0.60 E. No correct answerarrow_forwardCalculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in this market. Sales (millions of dollars) 7.4 7.1 Expressive 6.8 LA & Company 6.2 5.3 Forever 22 Limitless 4.2 What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations. Retailer Dap American Jaybirdarrow_forward
- The following table lists the market shares of the eight firms in an industry. Market Shares of Eight Firms in an Industry Market Share Firm 1 2 3 4 5 6 7 8 60 15 10 8 3 2 1 1 Calculate the four-firm concentration ratio for this industry. Enter your answer in the box below, and round to the nearest whole number if necessary.arrow_forwardIn a market there are five firms, all have a total cost curve equal to CT = 2q. The market demand is Q = 500 - 5P. How much profit would each firm get if they collude and share the market equitably? What is the profit to each firm if they agree to collude, but one firm misleads the others charging a slightly lower price? What is the profit if all firms do not collude and compete via price?arrow_forwardSuppose a proposed merger of firms would simultaneously lessen competition and reduce unit costs through economies of scale. Do you think such a merger should be allowed?arrow_forward
- Use the following table to calculate the four=firm concentration ratio for the U. S. auto market. Does this indicate a concentrated market or not? The table is............. GM 19% Ford 17% Toyota 14% Chrysler 11%arrow_forwardThe table below shows revenue data for different firms producing cleaning products. Use the given information to find the market share of each firm. Firm Revenue in $ Market Share in % Aardvark Inc 325 Baluga LLC 340 Cran Inc 140 Dingo Inc 495 Eagle Inc 360 Keep 2 decimals for the market share percentages What is the Four Firm Concentration Ratio? Is this market concentrated? OYes ONoarrow_forwardWhat is the concentration ratio?arrow_forward
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