8. The following table lists the percentage of market share for 6 firms in the toy industry. Firm Market Share A 40% B 6% C 14% D 2% E 3% F 35% What is the 4-firm concentration ratio (CR4) in this industry?What is the Herfindahl-Hirschman Index (HHI) for this industry? Refer to the text for this question.According to the CR4 and HHI measures, would you consider the toy industry (above) to be an oligopoly and why?

CR4 = addition of market share of 4 largest firms

Answered: The following table lists the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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8. The following table lists the percentage of market share for 6 firms in the toy industry.

Firm Market Share

A 40%

B 6%

C 14%

D 2%

E 3%

F 35%

What is the 4-firm concentration ratio (CR4) in this industry?
What is the Herfindahl-Hirschman Index (HHI) for this industry? Refer to the text for this question.
According to the CR4 and HHI measures, would you consider the toy industry (above) to be an oligopoly and why?

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