Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 13, Problem 2RQ
To determine
Four-firm concentration ratios.
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The table below presents the industry output for three different industries.
Firm
Industry 1 Output
Industry 2 Output
Industry 3 Output
Firm A
25
300
75
Firm B
25
0
75
Firm C
25
0
75
Firm D
25
0
0
All other firms
375
0
0
Instructions: Round your answers to two decimal places.
a. Calculate the four-firm concentration ratio for each industry.
Industry 1: %
Industry 2: %
Industry 3: %
b. Based on the information provided, what market structure best characterizes each industry?
Industry 1:
Industry 2:
Industry 3:
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QUESTION 23
Suppese an indstry has utal sales f 25 millon per y The teo larpest fems have sales of $6 millen each the id largest fem has sales of 2 miion, and the fourth largest f has sales of S1 millon The
rm conceation ratio for thin nduty
O 30 percent
O 1 percent
O25 percent
O 60 percent
QUESTION 24
Suppose there are four frm in an industry The market shares of the four fems are 5 percent, 20 percent 35 percert, and 40 percent The Hurfindahi Hischan index tor that industry
O 100
O6 650
O 1.250
O 3250
Chck Sane and Sulmit to ae and aulimit. Click Sate All Anaue to se all aencers
Sa A
Suppose that the six firms in industry A have annual sales of 40, 35, 12, 5, 5, and 3 percent of total industry sales. For the six firms in industry B, the figures are 35, 18, 15, 14, 10, and 8 percent. b. Calculate the four-firm concentration ratio and the Herfindahl index for each industry and compare their likely competitiveness. Instructions: Enter your answers as whole numbers.
Industry A four-firm concentration ratio =
Industry A Herfindahl index = Industry B four-firm concentration ratio =
Industry B Herfindahl index =
c. Industry A will be ________ (more/less) competitive than industry B.
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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