Refer to the data. Suppose that firms in this industry split up such that there were 20 firms, each with a 5 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be

Refer to the data. Suppose that firms in this industry split up such that there were 20 firms, each with a 5 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Government And Product Markets: Antitrust And Regulation

Section12.1: Antitrust

Problem 2ST

See similar textbooks

Related questions

Q: Ten firms compete in a market to sell product X. The total sales of all firms selling the product…

A: here we calculate the four firm concentration ratio in the market for product X by the following…

Q: If market share for five cleaning service companies are 8%, 13%, 6%, 25%, and 48%, the four firm…

A: The market share for five cleaning service companies are 8%, 13%, 6%, 25%, and 48%.

Q: Q. 14.21 Two firms are competing in an oligopolistic industry. Firm 1, the larger of the two firms,…

A: Oligopoly markets are characterised by a small number of suppliers dominating the market. They can…

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

A: a. Herfindal Hirschman index (HHI) is a tool that is used to determine the market concentrations of…

Q: Suppose that in the fast-food restaurant industry the four largest restaurants account for 30 %,…

A: Answer B 70%; 1658 HHI formula= It is the formula calculated through squaring market share of firm…

Q: 1. Return to our Cournot competition model with two firms. Suppose now that the products aren't…

Q: Calculate the four-firm concentration ratio for this industry. Enter your answer in the box below,…

A: Four Firm Concentration Ratio shows the share of the four largest firms in the industry.

Q: Firm A's strategy Low price High price Firm A Profit = $81 Firm A Profit = $107 High price Firm B…

A: Game theory:Game theory is a hypothetical system for imagining social circumstances among contending…

Q: (Mergers and Public Policy) Calculate the Herfindahl-Hirschman Index (HHI) for each of the following…

A: When talking about the Herfindahl-Hirschman Index (HHI), it explains the market concentration based…

Q: Consider a market with four firms. Suppose the first firm has a 39% market share, the second firm…

A: The HHI (Herfindahl-Hirschman Index) shows the market concentration and competitiveness. It is…

Q: You are the manager in a market composed of eight firms, each of which has a 12.5 percent market…

A: a. The premerger Herfindahl-Hirschman index (HHI) for this market can be calculated as follows:…

Q: Suppose the market shares of Cola-Cola, Pepsi, Anheuser-Busch, Coors, and Miller were 40 percent, 25…

A: # Concentration ratio in a market can be computed by emphasizing on the top 4 big firm's. We just…

Q: Number Definition A table that shows the payoffs each firm earns from every combination of firm…

A: Positive sum game is such a game where both the firms are better off. Please find answers below.

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: An industry is composed of Firm 1, which controls 70 percent of the market, Firm 2 with 15 percent…

A: By using the Herfindahl-Hirschman Index,

Q: suppose a market consists 3 firms ( firm A, firm B, firm C) and firm A's sales account for 40% of…

A: We will calculate Herfindahl-Hirshman index and four firm concentration ratio to answer this…

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: An industry consists of three firms with sales of $300,000, $700,000, and $250,000. a. Calculate the…

A: (a) Assume, Firm A sales = $3,00,000 Firm B sales = $7,00,000 Firm C sales = $2,50,000…

Q: Based only on the knowledge that the premerger market share of two firms proposing to merge was 30…

A: HHI index is the index for competitiveness in the market it is the squared summation of each firm It…

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

A: Market concentration measures how much a small number of firms control the market…

Q: With an estimated market share of 37%, Atlas is the dominant company and the price leader in an…

A: Given, Atlas's market share = 37% Remaining 7 companies have market share = (100 - 37)/7 = 9% a)…

Q: An industry has four firms, each with a market share of 25 percent. There is no foreign competition,…

A: Given market share of 4 firms = 25 % The Herfindahl Index(HHI) is calculated by squaring the market…

Q: An industry consists of three firms with sales of $300,000, $700,000 and $250,000. a) Calculate the…

A: (1)Assume,Firm A sales = $3, 00, 000Firm B sales = $7, 00, 000Firm C sales = $2, 50, 000Therefore,…

Q: You are the manager in a market composed of eight firms, each of which has a 12.5 percent market…

A: The Herfindahl-Hirschman Index or the HHI index is a most commonly used measure of concentration in…

Q: 5. of the total market share. If firm 1 and firm 2 were to merge, calculate the pre- A market has 3…

A: Given, Market share of Firm 1 = 37% Firm 2 = 17% Firm 3 = 46% The Herfindahl-Hirschman Index (HHI)…

Q: Market Share Firm (X) 25 22 C. 18 D 16 15 4 Suppose that firms B and D in this table merged into a…

A: Initial four firm concentration ration was = (25% + 22% + 18% +16%) = 81% Final four firm…

Q: Ten firms compete in a market to sell product X. The total sales of all firms selling the product…

A: The formula for calculating four-firm concentration ratio is shown below.

Q: Question 25. Suppose buyers of ice-cream are uniformly distributed on the interval [0, 1]. Ice-cream…

A: Ques 25) Given information: Ice-cream sellers = 2 Buyers = Uniformly distributed on the interval…

Q: With an estimated market share of 40%, Atlas is the dominant company and the price leader in an…

A: Herfindahl-Hirschman Index “HHI” may be a measure of market concentration. it's calculated by…

Q: Industry A is composed of three firms. One has an 80% market share, and the other two have a 10%…

A: Herfindahl Index measures the degree of concentration in an industry. If Herfindahl index is lower,…

Q: With an estimated market share of 60%, Atlas is the dominant company and the price leader in an…

A: If company A owns 60% share, then rest of the ten companies own 40% share indicating that each of…

Q: You are the manager in a market composed of 20 firms, each of which has a 5.00 percent market share.…

A: We are going to calculate Herfindahl-Hirschman index (HHI) to answer this question.

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: Part b please Suppose four Cournot competitors face an inverse market demand curve of P = 1620 –…

A: Market Demand function : P = 1620 – 8Q, where , Q = q1 + q2 + q3 + q4 Total Cost of each firm =…

Q: Question 190 of 190 FINAL - Social Studies In recent years, the top two manufacturers of soft…

A: Here, it is given that top two manufacturers in the soft drink industry purchase other two…

Question

Firm	Market Share (%)
A	18
B	17
C	17
D	17
E	16
F	15

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

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%?
Q1: 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%? Q2:About fifty years ago, the EPA, Environmental Protection Agency, embraced command and control laws. Later on, the EPA made adjustments and updates. These laws and their adjustments, a/ draws distinctions between the needs of firms and costly equipment upgrades. b/ are given considerable credit for cleaner air and water in recent decades. c/ were an inexpensive incentive for industrial polluters to improve performance. d/ were necessary as US industries had zero incentive to control pollution.
Firm A B C D E F If firms E and F in this table merged into a single firm, the Herfindahl index would Multiple Choice Market Share (%) 25 22 18 16 15 4 O not change. rise, as would the four-firm concentration ratio.
An industry is composed of Firm 1, which controls 70 percent of the market, Firm 2 with 15 percent of the market, and Firm 3 with 5 percent of the market. About 20 firms of approximately equal size divide the remaining 10 percent of the market. Calculate the Herfindahl-Hirschman Index before and after the merger of Firm 2 and Firm 3 (assume that the combined market share after the merger is 20 percent). Would you view a merger of Firm 2 with Firm 3 as procompetitive or anticompetitive? Explain.
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?
Industry A is composed of three firms. One has an 80% market share, and the other two have a 10% share each. The Herfindahl index for this industry is:
Calculate the 4 firm concentration ratio in a Market where the top 4 firm's have share in the market as follows:- 31% , 22% , 15% and 12%
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.
Suppose that in the market for sunglasses, market share is divided among six companies in the following manner: Firm Sun Shades Cool Shades UV Shield Shady Eyewear Tinted Windows Sun Fashion Market Share 90% 3% 2% 2% 2% 1% Based on the Herfindahl index of the market for sunglasses, the FTC would challenge not challenge encourage a merger between UV Shield and Tinted Windows.
Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $1,500,000. Ranking the firms' sales from highest to lowest, we find the top four firms' sales to be $310,000, $235,000, $205,000, and $ 140,000, respectively. Calculate the four - firm concentration ratio in the market for product X. Instruction: Enter your response rounded to two decimal places,
Suppose that in the fast-food restaurant industry the four largest restaurants account for 30 %, 20%, 15%, and 5% of the market share, respectively, and the 10 other small restaurants each account for 3%. If two of the 10 small restaurants merged, other things being equal, what would be the four-firm concentration ratio (CR) and the Herfindahl-Hirschman index (HHI), respectively? Select one: a. 70% 1640 b. 70%; 1658 C. 71%; 1640 d: 71%; 1658
Firm Market Share (%) A 30 B 29 C 16 D 12 E 7 F 6 Refer to the data. Suppose that firms A and F merged into a single firm. The four-firm concentration ratio and the Herfindahl index would be Multiple Choice