Essay
-Suppose there are ten firms that occupy the Odell, Oregon cherry pie market. The market share of each firm is listed in the above table.
a) What is the four-firm concentration ratio in this market?
b) What is the Herfindahl-Hirschman Index for this market?
c) If Firm H and Firm A merge, what is the new Herfindahl-Hirschman Index for this market?
d) A severe winter causes every firm except A, B, and E to close. With only these three firms operating, Firm A's market share is 71 percent, Firm B's market share is 23 percent, and Firm C's market share is 6 percent. What is the Herfindahl-Hirschman Index for this market now?
Correct Answer:
Verified
a) The four-firm concentration rate is 7...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q195: A proprietorship is a firm with<br>A) two
Q196: A method that is technologically inefficient<br>A) might
Q197: Firms are often more efficient than markets
Q198: A firm's opportunity costs<br>A) equal the costs
Q199: Which of the following is NOT an
Q201: The four-firm concentration ratio equals the percentage
Q202: Where large amounts of capital are used,
Q203: Which of the following types of business
Q204: There are 6 firms in a market
Q205: An example of the principal-agent problem is