Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 17, Problem 2MCQ
To determine
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The correct ratio and the correct percentage among the given options need to be determined.
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Suppose that three firms make up the entire wig manufacturing industry. One has a 50% market share, and the other two have a 25% market share each.
The Herfindahl index of this industry is _____.
a. 3,750
b. 1,000
c. 10,000
d. 5,000
e. 2,500
Mane Attraction, one of the firms with a 25% market share in the wig manufacturing industry, leaves the market. This would cause the Herfindahl index for the industry to _____.
a. remain the same
b. fall
c. rise
The largest possible value of the Herfindahl index is 10,000 because:
a. an index of 10,000 corresponds to 100 firms with a 1% market share each
b. an index of 10,000 corresponds to a monopoly firm with 100% market share
c. an industry with an index higher than 10,000 is automatically regulated by the Justice Department
Carrot Computers and its competitors purchase touch screens for their tablet computers from several suppliers. The slx makers of
touch screens have market shares of, respectively, 19 percent, 18 percent, 12 percent, 18 percent, 21 percent, and 12 percent.
Instructions: Enter your answers as a whole number.
a. What is the Herfindahl index for the touch screen manufacturing industry?
ok
b. By how much would a proposed merger between the two smallest touch screen makers increase the Herfindahl index?
rint
Is the government likely to challenge that proposed merger?
brences
(Click to select) :
c. If Carrot Computers horizontally merges with its competitor Blueberry Handhelds, by how much would the Herfindahl index change
for the touch screen industry?
There is no leader firm as such but one firm among the oligopolistic firms with the wisest management announces a price change first which is followed by other firms in the industry.
a.
price leader
b.
low cost firm
c.
barometric price leadership
d.
dominant firm
Chapter 17 Solutions
Foundations of Economics (8th Edition)
Ch. 17 - Prob. 1SPPACh. 17 - Prob. 2SPPACh. 17 - Prob. 3SPPACh. 17 - Prob. 4SPPACh. 17 - Prob. 5SPPACh. 17 - Prob. 6SPPACh. 17 - Prob. 7SPPACh. 17 - Prob. 8SPPACh. 17 - Prob. 9SPPACh. 17 - Prob. 10SPPA
Ch. 17 - Washtenaw Dairy in Ann Arbor, Michigan, sells 63...Ch. 17 - Prob. 2IAPACh. 17 - Prob. 3IAPACh. 17 - Prob. 4IAPACh. 17 - Prob. 5IAPACh. 17 - Use the following information to work Problems 5...Ch. 17 - Prob. 7IAPACh. 17 - Prob. 8IAPACh. 17 - Prob. 9IAPACh. 17 - Prob. 1MCQCh. 17 - Prob. 2MCQCh. 17 - Prob. 3MCQCh. 17 - Prob. 4MCQCh. 17 - Prob. 5MCQCh. 17 - Prob. 6MCQCh. 17 - Prob. 7MCQ
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