In a market where there is a certain number of companies with their percentage of participation surprisingly specified: Pencil manufacturers Bic OfficeMax Derwent Faber-Castell Lápices S.A. Lapicitos S.A. % share 25% 20% 15% 15% 15% 10% a) Calculate the market concentration index in the pencil industry? Use Hirschamn-Herfindahl index. b) Which firms could merge in this market without it becoming a highly concentrate market? c) How should the concentration index be analyzed according to Hannah and Kay? (Ref: Desirable criteria of a concentration index)

In a market where there is a certain number of companies with their percentage of participation surprisingly specified: Pencil manufacturers Bic OfficeMax Derwent Faber-Castell Lápices S.A. Lapicitos S.A. % share 25% 20% 15% 15% 15% 10% a) Calculate the market concentration index in the pencil industry? Use Hirschamn-Herfindahl index. b) Which firms could merge in this market without it becoming a highly concentrate market? c) How should the concentration index be analyzed according to Hannah and Kay? (Ref: Desirable criteria of a concentration index)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 2E

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