Calculate the Herfindahl-Hirschman Index (HHI) for each of the following markets. Market A has two firms, each with a market share of 50 percent. The HHI of these two firms is Market B has two firms, one with a market share of 90 percent and the other with a market share of 10 percent. The HHI of these two firms is Market C has firms, 5 with a market share of 16 percent each and 5 with a market share of 4 percent each. The HHI of these firms is Market D has firms, 2 with a market share of 34 percent each and 8 with a market share of 4 percent each. The HHI of these firms is Using your results, arrange the markets from most competitive to least competitive. A. Market B, Market A, Market D, Market C B. Market C, Market D, Market A, Market B

Calculate the Herfindahl-Hirschman Index (HHI) for each of the following markets. Market A has two firms, each with a market share of 50 percent. The HHI of these two firms is Market B has two firms, one with a market share of 90 percent and the other with a market share of 10 percent. The HHI of these two firms is Market C has firms, 5 with a market share of 16 percent each and 5 with a market share of 4 percent each. The HHI of these firms is Market D has firms, 2 with a market share of 34 percent each and 8 with a market share of 4 percent each. The HHI of these firms is Using your results, arrange the markets from most competitive to least competitive. A. Market B, Market A, Market D, Market C B. Market C, Market D, Market A, Market B

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Economic Regulation And Antitrust Policy

Section: Chapter Questions

Problem 4.7P

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