Use the information in the table below.Percentage ofSalesFirm 1Firm 2Firm 3Firm 4Which of the industries is the most concentrated based on the Herfindahl Index? Industry type your answer...What is this industry's Herfindahl Index? type your answer...Industry 1 Industry 2 Industry 3 Industry 455%45%25%10%35%40%25%20%35%10%-10%60%10%20%

The Herfindahl-Hirschman Index (HHI) shows the level of concentration of the firms in an industry.…

Use the information in the table below. Percentage of Sales Firm 1 Firm 2 Firm 3 Firm 4 Which of the industries is the most concentrated based on the Herfindahl Index? Industry t Industry 1 Industry 2 Industry 3 Industry 4 55% 45% 25% 10% 10% 35% 40% 60% 25% 20% 35% 10% 10%- 20% What is this industry's Herfindahl Index? type your answer...

Use the information in the table below. Percentage of Sales Firm 1 Firm 2 Firm 3 Firm 4 Which of the industries is the most concentrated based on the Herfindahl Index? Industry t Industry 1 Industry 2 Industry 3 Industry 4 55% 45% 25% 10% 10% 35% 40% 60% 25% 20% 35% 10% 10%- 20% What is this industry's Herfindahl Index? type your answer...

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 14RQ: How do we measure a Herfindahlâ€”Hirshman Index? What does a low measure mean about the extent of...

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How do we measure a Herfindahlâ€”Hirshman Index? What does a low measure mean about the extent of competition?
ok In the table below are data on five different industries and the market shares for each of the firms in the industry. Assume that there is no foreign competition, entry into the industry is difficult, and that no firm in each industry is on the verge of bankruptcy. In the column to the right of the table, calculate the Herfindahl index. Tint erences esc Market Share of Firms in Industry Industry Alpha Beta Mc Graw Hill Q Short Answer Toolbar navigation Kappa Delta Epsilon BIVS -50--- Di 2 Which industry has the most market power and which industry has the least? P @ W # 3 E 4 Herfindahl index R 1 33 25 20 60 25 5 STAZA % 23 456 22 14 12 10 9 25 25 15 10 20 20 20 20 10 10 10 10 20 15 15 15 10 & Search Protecto Pray T 6 Y 1.5 7 2 Next > 8 1 O O * P |{ d
Unsure which is the correct answers Suppose that three firms make up the entire wig manufacturing industry. One has a 50% market share, and the other two have a 25% market share each. The Herfindahl index of this industry is a. 3,750 b. 1,000 c. 10,000 d. 5,000 e. 2,500 Mane Attraction, one of the firms with a 25% market share in the wig manufacturing industry, leaves the market. This would cause the Herfindahl index for the industry to __-- a. remain the same b. fall c. rise The largest possible value of the Herfindahl index is 10,000 because: a. an index of 10,000 corresponds to 100 firms with a 1% market share each b. an index of 10,000 corresponds to a monopoly firm with 100% market share c. an industry with an index higher than 10,000 is automatically regulated by the Justice Department
In Brazil, coffee beans are cultivated by a very large number of small farms that all produce beansof similar quality and taste at similar costs. Land is still plentiful, and the equipment required isaffordable enough to allow new farming businesses to start up under current market conditions.However, better production techniques, especially alternatives to polluting fertilisers anddeforestation, are needed in this industry. Using the theory and models of industry structure, examinethis industry. Should government be worried about any aspect of how an industry with this marketstructure will perform?
An account of the difficulties of Japanese mobile phone manufacturers argues that thesefirms made a mistake by concentrating on selling in high-income countries while makinglittle effort to sell in low-income countries:The main growth in the wireless industry overall is in emerging markets, which needcheap phones. The world’s top three makers—Nokia, Samsung and Motorola—focus onthis segment. . . . Japanese firms are caught in a vicious circle: because they are notselling to poor countries, their volume stays low, which keeps prices high, which makesselling to poor countries infeasible.Why would the price of Japanese mobile phones be high because Japanese firms areproducing these phones in low volumes? Use a graph to illustrate your answer.
Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms. Market Share Firms 2008 2013 A B C D E F G H I G 26% 21% 16% 10% 9% 7% 4% 3% 2% 2% 22% 23% 19% 9% 8% 7% 6% 4% 1% 1% Calculate the concentration ratio CR4 and the concentration ratio CR8 for 2008 and 2013 Calculate the Herfindahl-Hirschmann Index (HHI) for 2008 and 2013 Using the CR4, CR8, and HHI, analyze the evolution of the seller concentration in the industry. Has the industry become more or less concentrated? Using the CR4, CR8, and HHI, analyze the evolution of the potential market power of firms in the industry.
May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)
Carrot Computers and its competitors purchase touch screens for their tablet computers from several suppliers. The six makers of touch screens have market shares of, respectively, 19 percent, 18 percent, 14 percent, 16 percent, 20 percent, and 13 percent. a. What is the Herfindahl index for the touch screen manufacturing industry? b. By how much would a proposed merger between the two smallest touch screen makers increase the Herfindahl index? Would the government be likely to challenge that proposed merger? c. If Carrot Computers horizontally merges with its competitor Blueberry Handhelds, by how much would the Herfindahl index change for the touch screen industry?
Suppose that three firms make up the entire wig manufacturing industry. One has a 50% market share, and the other two have a 25% market share each. The Herfindahl index of this industry is _____. a. 3,750 b. 1,000 c. 10,000 d. 5,000 e. 2,500 Mane Attraction, one of the firms with a 25% market share in the wig manufacturing industry, leaves the market. This would cause the Herfindahl index for the industry to _____. a. remain the same b. fall c. rise The largest possible value of the Herfindahl index is 10,000 because: a. an index of 10,000 corresponds to 100 firms with a 1% market share each b. an index of 10,000 corresponds to a monopoly firm with 100% market share c. an industry with an index higher than 10,000 is automatically regulated by the Justice Department
Table 16-1 The following table shows the output produced by each of the top eight firms in four industries as well as the total industry output for those industries. Firm Industry A Industry B Industry C İndustry D 1 50,000 18,000 37,000 36,500 35,500 40,000 2 47,000 17,750 39,000 3. 43,000 17,250 37,000 4 38,000 16,500 34,000 34,000 32,000 15,500 32,000 30,000 25,000 14,250 29,500 25,000 17,000 12,750 26,500 19,000 12,000 8,000 11,000 23,000 Total 270,000 130,000 300,000 250,000 Refer to Table 16-1. Which industry has the highest concentration ratio? Oa. Industry A Ob. Industry D Oc. Industry B Od. Industry C
Chegg Home Expert Q&A My solutions Student question Refer to the data. The Herfindahl index for this industry is Multiple Choice 2, 144. 1,948. 8,600. C Firm Market Share (%) A 28 B 22 с 22 D 14 E 14 Time Left: 00:09:40 Refer to the data. The Herfindahl index for this industry is Multiple Choice О 86. О 2,144. О 1,948 О 8,600.
Cape Town and Durban were first developed in the 17th and 18th centuries as trading posts on theshipping route between Western Europe and Asia. During the 19th century, this role changed withthe discovery of diamonds and gold in the interior. The port cities developed from being stop-overand service points providing shipping services, to being ports through which commodities weretraded.”The change in the that occurred in the Durban and Cape Town ports during the 19th century is best explained by…a) A movement along the production possibilities frontier.b) A movement towards the production possibilities frontierc) An outward movement of the production possibilities frontierd) An inward movement of the production possibilities frontier