Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 15, Problem 9P
To determine
(a)
To compute:
The Herfindahl-Hirschman Index (HHI) for the given situation.
To determine
(b)
To compute:
The Herfindahl-Hirschman Index (HHI) for the given situation.
To determine
(c)
To compute:
The Herfindahl-Hirschman Index (HHI) for the given situation.
To determine
(d)
To compute:
The Herfindahl-Hirschman Index (HHI) for the given situation.
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There are two groups of firms below.
Group 1: firms in the retail sector (e.g. Amazon; Wal-Mart; Target; Kohl's; Sears; Macy's)
Group 2: firms in the wireless services industry (e.g. Verizon; AT & T; Sprint/T-Mobile) (this about telecommunication services, not about the sale of phones)
For each group determine and explain if the group is monopolistic competitive or an oligopoly. You need to specific for both in which market structure the firms operate)
Then choose one of the firms from one group. Using a Porter's analysis what are the threat to profitability?
7
Discuss why a producer in an oligopolist market ("few" competitors) will pay closer attention to their competitors than a producer in a highly competitive market ("many" competitors).
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