FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
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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