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 the Herfindahl-Hirschman index for each of the industries above, the industry with the most concentration of market power is: Industry 1 Industry 2 Industry 3 Industry 4
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- Captain Catahoula and Bow Wow Wonder are two of the four firms in the dog food industry. Before they notify the Federal Trade Commission and the Department of Justice of their plans to merge, Captain Catahoula hires you to determine the concentration of this industry. Use the table to calculate the Herfindahl–Hirschman Index (HHI) for this dog food industry and then complete the sentence. Firm Industry Bow Wow Wonder 10% Waggin' Tails 34% Mongrel Munchies 16% Captain Catahoula 40% What is the HHI for this dog food industry? HHI: You report that this industry is .The table below shows recent worldwide market shares of producers of inkjet printers: Firm Brother Canon Dell Share of Worldwide Market Sales 4% 16 5 19 41 13 Epson Hewlett-Packard Lexmark Samsung Other 1 The value of the Herfindahl-Hirschman index for the industry is. (Enter your response as a whole number.)Calculate the Herfindahl-Hirshman Index given the following market shares: Company Market Share Visa 60% Mastercard 30% American Express 10%
- A market is dominated by five firms, each with an equal share of market sales. What is the Herfindahl-Hirschman Index for this market?Two competing companies, A and B face the same unit cost of a product that is fixed and equal to 15 monetary units. The demand function for company A's product is Pa=65-2.5Qa and for B's product is Pb=60-2Qb.Calculate the Lerner index at the equilibrium position of each company. Comparing the index you found for company A with the index you found for company B what is found? If there is a difference between them, explain why it is due.Market Share (% Suppose that the table shows market share data for all of the Restaurant sushi restaurants in town Ahi Sushi 45 25 Shizuoka Calculate the Herfindahl-Hirschman index (HHI) for the local sushi market. Yoshinos 15 Ono Sushi 10 Arigato НHI:
- Firm Market Share (%) A 18 B 17 C 17 D 17 E 16 F 15 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 beCalculate 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 C. Market D, Market C, Market B, Market A D. Market C, Market B, Market A, Market DIndustry A consists of four firms, each of which has an equal share of the market. Compute the Herfindahl-Hirschman index for the industry. Industry B consists of 10 firms, each of which has an equal share of the market. Compare the Herfindahl–Hirschman Indexes for the two industries. Now suppose that there are 100 firms in the industry, each with equal shares. What is the Herfindahl-Hirschman index for this industry? State the general relationship between the competitiveness of an industry and its Herfindahl-Hirschman index
- PQ 18.02 (and 18.03) Two businesses in a market can decide to increase the amount of stores they operate. If neither business adds new stores they will each earn $10 million in profit; if both add new stores they will each earn $4 million in profit; and if one adds new stores while the other does not, the business adding new stores earns profit of $10 million and the other earns profit of $5 million. If these businesses are not colluding we would expect: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a both may or may not add new stores. b one business will add new stores and the other will not. c both will add new stores. d neither will add new stores.Ten firms compete in a market to sell product X. The total sales of all firms selling the product are GHS1 million. Ranking the firms’ sales from highest to lowest, we find the top four firms’ sales to be GHS175,000, GHS150,000, GHS125,000, and GHS100,000, respectively. Calculate the four-firm concentration ratio in the market for product X.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.