3. The bicycle industry consists of seven firms. Firms 1, 2, 3, each has 20% of the market share, and Firms 4, 5, 6, 7, each has 10% of the market share. 3.а Calculate C4 for the industry. 3.b Calculate HHI for the industry. 3.с Now suppose that Firms 3 and 4 merge, so that the new merged firm has a market share of 30%. Calculate the change of HHI caused by this merger.

3. The bicycle industry consists of seven firms. Firms 1, 2, 3, each has 20% of the market share, and Firms 4, 5, 6, 7, each has 10% of the market share. 3.а Calculate C4 for the industry. 3.b Calculate HHI for the industry. 3.с Now suppose that Firms 3 and 4 merge, so that the new merged firm has a market share of 30%. Calculate the change of HHI caused by this merger.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

don't answer by pen paper and don't use chatgpt otherwise we will give dounvote Answer both others wise give dounvote 48. There are 5 firms with sales of firm1=$19.0million, firm2=$11.0million, firm3=$6.0 million, and the remaining two firms have $4.0 million each. Firm1 and Firm2 wish to merge. What is the new Herfindahl Hirschman Index (HHI)? 34. There are 19.6 firms in a market with sales, Firm 1=$ 18.5, Firm 2= $14.1, Firm 3=$ 8.0, Firm 4= $11.1, Residual firms = $1.0 each, Find the numbers equivalent of firms
PLEASE TYPE Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms. Market Share Firms 2008 2013 A B C D E F G H I G 26% 21% 16% 10% 9% 7% 4% 3% 2% 2% 22% 23% 19% 9% 8% 7% 6% 4% 1% 1% Using the CR4, CR8, and HHI, analyze the evolution of the potential market power of firms in the industry.
Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms. Market Share Firms 2008 2013 A B C D E F G H I G 26% 21% 16% 10% 9% 7% 4% 3% 2% 2% 22% 23% 19% 9% 8% 7% 6% 4% 1% 1% Using the CR4, CR8, and HHI, analyze the evolution of the potential market power of firms in the industry.
1.Microsoft is one of the leading software companies. Prior to 2000, Microsoft’s share of the market for personal computer operating systems stood above 80 per cent. However, since the twenty-first century Microsoft’s market share has steadily declined to 40 per cent. This is due to the rise in competing software producers such as Apple macOS (10%), Google's Android OS (35%), Linux Operating System (35%), and Apple iOS (5%). The market share of each company is provided in parentheses. Google and Linux have decided that it would be in their best interest to work together to serve the market. This is not common knowledge to the person’s outside of the companies. i. Draw how equilibrium price and quantity are determined in this industry. Hi does this refer to the monopoly market structure diagrams? 2. Allsmart’s demand curve is given by Q=10-P for its dishwashers. The marginal and average cost is $3 per dishwasher produced. Complete the following table. Photo below concerns…
14. Investment in Musical ActsSigning new music acts can be highly speculative. Record producers at music studios have to get budget approval before they sign a new act to a recording deal. Most acts perform a tried and true form of popular music in which record sales can be pretty well predicted. However, once they get approval for their budgets, why do producers sometimes sign riskier acts who either flop or â€œbreak-outâ€ into the next sensation?
3.If two construction companies merge, this is called a ________ merger, whereas if a bakery merges with a flour mill, this is called a ________ merger. a) horizontal, vertical b) conglomerate, horizontal c) natural, vertical d) conglomerate, vertical
What is a corporate merger? What is an acquisition?
ANS ME ! 1 In a completely serious market, the interaction of section or leave closes when a. Firms are working with abundance limit. b. Firms are making zero monetary benefit. c. Firms experience diminishing minimal income. d. Cost is equivalent to minor expense. 2. Harmony amounts in business sectors described by oligopoly is a. Lower than in imposing business model business sectors and higher than in completely serious markets. b. Lower than in imposing business model business sectors and lower than in completely serious markets. c. Higher than in imposing business model business sectors and higher than in completely serious markets.
(5) The largest cattle rancher in a given region will be unable to have a ________ when sufficient numbers of smaller cattle ranchers provide sources of competition. Select one: a. monopolistic competitive advantage b. oligopoly c. monopoly (6) If an individual was studying the economic policies designed to stimulate the country’s economy out of a recession they would be a Select one: a. microeconomist. b. macroeconomist. c. business manager.
2. Reviewing on social media can take many forms such as reposting your followers feedback on IG stories or asking them to answer a Poll. a. True b. False
6.What best describes the example/instance for building a model to identify cross-sell opportunities (trying to convince people to adopt a new product category - say jewelry - that they have not bought in before)? A. Any current customer. B. Any new customer who might be interested in jewelry. C. All current customers who up to a certain point in time have NOT bought in the jewelry category. D. All current customers who up to a certain point in time have NOT bought in the jewelry category but did buy jewelry in the next time frame.
(Mergers and Public Policy) Calculate the Herfindahl-Hirschman Index (HHI) for each of the following industries.Which industry is the most concentrated?a. An industry with five firms that have the followingmarketshares: 50 percent, 30 percent, 10 percent,5 percent, and 5 percentb. An industry with five firms that have the followingmarketshares: 60 percent, 20 percent, 10 percent,5 percent, and 5 percentc. An industry with five firms, each of which hasa 20 percent market share