Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 24, Problem 3WNG
To determine
Determine four-firm concentration ratio.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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
Chapter 24 Solutions
Economics (MindTap Course List)
Knowledge Booster
Similar questions
- 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
- Consider an industry consists of three firms (Firm-A, Firm-B and Firm-C) with sales of AED300,000, AED700,000, and AED250,000; respectively. Calculate the Herfindahl-Hirschman index (HHI) for the industry. Calculate the four-firm concentration ratio (C4). Do you think the ‘Department of Justice’ (see the guideline below) would attempt to block a horizontal merger between Firm-A and Firm-C)? The Department of Justice’s Guidelines (Suppose): Suppose that the Department of Justice’s Guidelines suggest that antitrust authorities are more likely to challenge a merger when the relevant Herfindahl-Hirschman index is greater than 2,500 and the resulting increase in the index as a result of the merger is more than 200.arrow_forwardThe four-firm concentration ratio for the industry described in this table isarrow_forwardThe 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_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 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_forwardDo not use chatgpt.arrow_forwardTen firms compete in a market to sell product X. The total sales of all firms selling the product are $1,500,000. Ranking the firms' sales from highest to lowest, we find the top four firms' sales to be $375,000, $305,000, $245, 000, and $ 195,000, respectively. Calculate the four - firm concentration ratio in the market for product X.arrow_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
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning