3. Suppose we have two markets, A and B, each consisting of seven firms. The market shares of the 5 largest firms (ordered by market share) are shown in the table below. Firm rank Market share (%) Market A Market B 20 22 20 20 3 20 20 20 15 15 15 Select the false statement. The CR3 and CR4 concentration ratios both point to the same market (either A or B) having more market power. The 6th largest firm in market B captures less than 8 percent of the market. The HHI of market B is at most 1,798 (in units of squared percent). (Hint: for positive x and y, (r + y)2 = 2? + y? + 2xy 2 z? + y².) The HHI of market A is definitely larger than the HHI of market B. More than one statement are false. All statements are true.

3. Suppose we have two markets, A and B, each consisting of seven firms. The market shares of the 5 largest firms (ordered by market share) are shown in the table below. Firm rank Market share (%) Market A Market B 20 22 20 20 3 20 20 20 15 15 15 Select the false statement. The CR3 and CR4 concentration ratios both point to the same market (either A or B) having more market power. The 6th largest firm in market B captures less than 8 percent of the market. The HHI of market B is at most 1,798 (in units of squared percent). (Hint: for positive x and y, (r + y)2 = 2? + y? + 2xy 2 z? + y².) The HHI of market A is definitely larger than the HHI of market B. More than one statement are false. All statements are true.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1
can you please answer 34 please
QUESTION 13 Consider a market where two firms (1 and 2) produce differentiated goods and compete in prices. The demand for firm 1 is given by D₁(P₁, P2) = 140 - 2p1 + P2 and demand for firm 2's product is D2 (P1, P2) 140 - 2p2 + P1 Both firms have a constant marginal cost of 20. What is the Nash equilibrium price of firm 1? (Only give a full number; if necessary, round to the lower integer; no dollar sign.)
Suppose we have two markets, A and B, each consisting of seven firms. The market shares of the 5 largest firms (ordered by market share) are shown in the table below. True or false? (i) The CR3 and CR4 concentration ratios both point to the same market (either A or B) having more market power. (ii) The 6th largest firm in market B captures at most 8 percent of the market. (iii) The HHI of market B is at most 1,798 (in units of squared percent). (Hint: for positive x and y, (x+y)2=x2+y2+2xy≥x2+y2.) (iv) The HHI of market A is definitely larger than the HHI of market B.
1.) Suppose you have a 10 identical firm Cournot Oligopoly. You don't have a demand equation but you do know that the market elasticity of demand is equal to -0.5 and MC = $4. What is market price? $4.00. none of the available options. $10.00 $5.00. 2.) Refer to the previous question. Suppose 2 firms leave the market. What is the new price? $5.33. $8.00. $4.00. none of the available options.
just question 2 D and E please
Suppose we have two markets, A and B, each consisting of seven firms. The market shares of the 5 largest firms (ordered by market share) are shown in the table below. Firm rank Market share (%) Market A Market B 1 20 22 2 20 20 3 20 20 4 20 15 5 15 15 6 ? ? 7 ? ?
Question 24 2 pts Assume an industry has 18 fırms. Top two firms have the market share 10 percent each and rest of the sixteen firms have market shares 5 percent each. Herfindahl index in this industry is equal to Question 25 2 pts Assume an industry has 18 fırms. Top two firms have the market share 10 percent each and rest of the sixteen fırms have market shares 5 percent each. Four-firms concentration ratio in this industry is equal to
1. In a homogenous good Bertrand duopoly model with complete and symmetric information the Bertrand paradox arises because the firms compete using _________ as their choice variable. 2. Suppose there is an industry with nine firms where two of them have a market share of 0.2, three of them have a market share of 0.1 and the remaining firms have a market share of 0.075. The 4 firm concentration ratio is______. (two decimal accuracy)
Sort each of the scenarios as to whether or not they are characteristic of price leadership. Assume that in all of the scenarios, the companies mentioned are the largest in their respective oligopolies. Characteristic of price leadership Not characteristic of price leadership Answer Bank Open collusion occurs between The Big Four accounting firms to fix prices. After a tax on junk food is passed, Cokesi decides to raise prices on soda, the first price increase since high fructose corn syrup prices spiked. A price war breaks out between the two primary detergent companies, UniGamble and Proctlever. Viscard chooses to set interest rates at below profit-maximizing rates in order to block entry of new firms. In a press release, Shell announces that it will be increasing prices on unleaded fuel.
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%?
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?