Calculate the Herfindahl-Hirschman Index (HHI) for each of the following markets. Market A has two firms, each with a market share of 50 percent. The HHI of these two firms is Market B has two firms, one with a market share of 90 percent and the other with a market share of 10 percent. The HHI of these two firms is Market C has firms, 5 with a market share of 16 percent each and 5 with a market share of 4 percent each. The HHI of these firms is Market D has firms, 2 with a market share of 34 percent each and 8 with a market share of 4 percent each. The HHI of these firms is Using your results, arrange the markets from most competitive to least competitive. A. Market B, Market A, Market D, Market C B. Market C, Market D, Market A, Market B

The table shows sales information for the firms in three different markets. Use the Herfindahl‑Hirschman Index (HHI) to sort the markets from most concentrated to least concentrated. You are currently in a ranking module. Turn off browse mode or quick nav, Tab to move, Space or Enter to pick up, Tab to move items between bins, Arrow Keys to change the order of items, Space or Enter to drop. Most concentrated     Least concentrated Answer Bank Market C Market B Market A   Sales Market A Market B Market C Largest firm $545.00 $10131.00 $1056.00 2nd Largest firm $409.00 $91.00 $971.00 3rd Largest firm $315.00 $63.00 $0 4th Largest firm $285.00 $0 $0 Total market sales $1554.00 $10285.00 $2027.00

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.

Beta's Price Policy High Low A B $20 $30 High Alpha's Price Policy $20 $10 C D $10 $15 Low $30 $15 Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If both firms follow a high-price policy. Multiple Choice Beta will realize a $10 million profit and Alpha a $30 million profit. each will realize a $15 million profit Alpha will realize a $10 million profit and Beta a $30 million profit