Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 11, Problem 3WNG
To determine
Determine four-firm concentration ratio.
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Suppose an industry is composed of six firms. Four firms have sales of $10 each, and two firms haves sales of $5 each. What is the four-firm concentration ratio for this industry?
calculate HHI for this industry?
Suppose an industry is composed of six firms. Four firms have sales of $10 each, and two firms have sales of $5 each. What is the four-firm concentration ratio for this industry?
With formula
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- Suppose that the top six firms in an industry have total annual sales of $250 billion, $210 billion, $150 billion, $120 billion, $80 billion, and $60 billion, respectively. Instructions: Round your answers to the nearest whole number. a. What is the four-firm concentration ratio for this industry? percent b. What is the Herfindahl index for this industry? (Hint: To find the Herfindahl index, you will need to compute the percentage market share for each firm in the industry. When calculating market share, do not round your intermediate calculations.)arrow_forwardThe Costa Rican gimble industry consists of 14 firms whose annual sales are as shown in the table below: \table[[Firm, Sales (in millions)], [A, 4], [B, 8], [C, 12], [D, 18], [E, 23], [F, 17], [Next eight firms (total), 18]] a. What is the (four-) firm concentration ratio for this industry? Four firm concentration: % b. In what type of market does the gimble industry operate? Market type: c The Costa Rican gimble industry consists of 14 firms whose annual sales are as shown in the table below: Firm A Sales (in millions) 4 B C D E F Next eight firms (total) 8 12 18 23 17 18 a. What is the (four-) firm concentration ratio for this industry? Four firm concentration: % b. In what type of market does the gimble industry operate? Market type: (Click to select) varrow_forwardNonearrow_forward
- The following table reports the four firm concentration ratio for five different industries: Part 1: Refer to the table above. In which industry do the four largest firms have the most market power? Part2: Refer to the table above. I'm which industry do the four largest firms have the least market power?arrow_forwardThe following table lists the market shares of the eight firms in an industry. Market Shares of Eight Firms in an Industry Market Share Firm 1 2 3 4 5 6 7 8 60 15 10 8 3 2 1 1 Calculate the four-firm concentration ratio for this industry. Enter your answer in the box below, and round to the nearest whole number if necessary.arrow_forwardCalculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in this market. Sales (millions of dollars) 7.4 7.1 6.8 6.2 5.3 4.2 What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations. Retailer Dap American Jaybird Expressive LA & Company Forever 22 Limitless four-firm concentration ratio: 28arrow_forward
- Calculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in this market. Sales (millions of dollars) 7.4 7.1 Expressive 6.8 LA & Company 6.2 5.3 Forever 22 Limitless 4.2 What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations. Retailer Dap American Jaybirdarrow_forwardDo not use chatgpt.arrow_forwardThe table below shows revenue data for different firms producing cleaning products. Use the given information to find the market share of each firm. Firm Revenue in $ Market Share in % Aardvark Inc 325 Baluga LLC 340 Cran Inc 140 Dingo Inc 495 Eagle Inc 360 Keep 2 decimals for the market share percentages What is the Four Firm Concentration Ratio? Is this market concentrated? OYes ONoarrow_forward
- Show all fomulaesarrow_forwardThe top six firms in an industry have a total sales of the following respectively $54million, $47million, $45million, $40million, $30million, $25million; total industry sales are $261million. for this industry, what is the firm 4-firm concentration ratio? based on the value calculated, what market structures does this industry represent? Why? if the third and the six largest firms are anted to merge, what do you think the department of justice Would do? Why?arrow_forwardConsider a market with four firms. Suppose the first firm has a 54% market share, the second firm has a 30% market share, the third firm has a 15% market share, and the fourth firm has a 1% market share. Using the Herfindahl-Hirschman Index (HHI), what is this market's level of concentration? —- . (Enter a numeric response using an integer.)arrow_forward
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