Suppose that a small town has six burger shops whose respective shares of the local market are (as percentages of all hamburgers sold): 26%, 20%, 18%, 14%, 12%, 10%, What is the four-firm concentration ratio of the hamburger industry and what is the Hirchmann Herfindahl Index (HHI) for the hamburger industry in this town?

Q: Suppose an industry is composed of six firms. Four firms have sales of $10 each, and two firms have…

A: 4 firms have sale of = $ 10 Total sale = 10 *4 = 40 There are two more firms having sales of = $ 5…

Q: The following table lists the market shares of the eight firms in an industry.  Market Shares of…

A: 4 firms Concentration ratio = (S1+ S2+ S3+S4)/ Total industry sales   50+15+15+10/ 100= 90/100 =…

Q: Consider an industry composed of only two firms, each producing an identical product. The two firms…

A: We have stackleberg competition between two firms where they both have the same cost structure.

Q: Market Share Firm (%) A 20 20 C 20 D 20 E 10 F 10 The four-firm concentration ratio for the industry…

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Q: Calculate the Concentration ration (CR4) and Herfindahl-Hirschman index (HHI) for each industry.…

A: 4 firm concentration ratio is given as the sum of first four firms ratio in decreasing order ie the…

Q: An industry is composed of Firm 1, which controls 70 percent of the market, Firm 2 with 15 percent…

A: By using the Herfindahl-Hirschman Index,

Q: Consider an industry consists of three firms (Firm-A, Firm-B and Firm-C) with sales of AED300,000,…

A: Given: Firm Sales A 300,000 B 700,000 C 250,000     ​

Q: The market demand in a homogeneous-product Cournot duopoly is P = 113 - 2.2Q, where Q = Q1 + Q2…

A: For the level of output and profits when Firm 2 cheats and Firm 1 colludes , firstly we find the…

Q: The market demand in a homogeneous-product Cournot duopoly is P = 113 - 2.2Q, where Q = Q1 + Q2…

A: If they engage in collusion and behave as a monopoly then the profit-maximizing equilibrium is given…

Q: Suppose an industry is composed of six firms. Four firms have sales of $10 each, and two firms haves…

A: Four firm concentration ratio is the percentage of industry sales which belongs to the largest four…

Q: The top six firms in an industry have a total sales of the following respectively $54million,…

A: A merger refers to the act of collaboration of two companies into a single company. The purpose of a…

Q: (Mergers and Public Policy) Calculate the Herfindahl- Hirschman Index (HHI) for each of the…

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Q: The market demand in a homogeneous-product Cournot duopoly is P = 100 - 2Q, where Q=Q1+Q2 (Firm 1…

A: If they engage in collusion and behave as a monopoly then the profit-maximizing equilibrium is…

Q: You are the manager in a market composed of eight firms, each of which has a 12.5 percent market…

A: The concentration ratios are used to measure the proportion of total market output produced by the…

Q: Read the following extract and answer question? Evidence of domination both the Competition…

A: Market failure is a situation where the free market fails to allocate resources in such manner that…

Q: The graph that accompanies this question illustrates two demand curves for a firm operating in a…

A: a. When the rivals in the economy will match any price change in the economy, then the price and…

Q: Suppose that the top six firms in an industry have total annual sales of $250 billion, $210 billion,…

A: The four-firm ratio measures the competition level in the market. It shows the market share of the…

Q: Assume that two companies (A and B) are duopolists that produce identical products. Demand for the…

A:

Q: Suppose an industry consists of three firms. Two firms have sales of $10 each, and one firm has…

A: HHI=  10,000[ ( 10/50 )2 + ( 10/50  )2 + (30/50  )2  ] =  10,000[ ( 1/25 ) + ( 1/25 ) + ( 9/25 ) ] =…

Q: An industry consists of three firms with sales of $300,000, $700,000 and $250,000. a) Calculate the…

A: (1)Assume,Firm A sales = $3, 00, 000Firm B sales = $7, 00, 000Firm C sales = $2, 50, 000Therefore,…

Q: You are given the market demand function Q=2200-1000p, and that each duopoly firm's marginal cost is…

A: Cournot competition is an financial version used to explain an enterprise shape wherein agencies…

Q: Market Share Firm (X) 25 22 C. 18 D 16 15 4 Suppose that firms B and D in this table merged into a…

A: Initial four firm concentration ration was  = (25% + 22% + 18% +16%)  =  81%  Final four firm…

Q: Consider a hypothetical demand schedule for monosodium glutamate (MSG). Suppose that Ajinomoto holds…

A: Cartel formation is an example of a monopoly where few firms come together and try to extract…

Q: Suppose that there are N = 10 firms in a market, and each of them have an equal share of the market,…

A: As per the question total number of firms are N=10 firms and share of each firm is given as Si=110.…

Q: The Herfindahl-index (HHI) is empty and obscure, giving little clear basis for assessing the degree…

A: In a market, different type sof analysis are made to know the features and functioning of a market.

Q: The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2(Q1 + Q2) and costs…

A: Note : Since there are multiple sub parts of the question , only the first three sub parts shall be…

Q: Q12 Assume the top six firms producing random access memory (RAM) in Canada comprising the industry…

A: Given: Market share of top 6 firms are : 21,17,16,11,9,6.   Herfindahl index is given as: HI =…

Q: Suppose that a small town has six burger shops whose respective shares of the local market are (as…

A:

Q: Elon Musk, the richest man in the world, currently controls two companies, Tesla, which manufactures…

A: A horizontal merger is when a company acquires merges with another company that is involved in the…

Q: The market demand in a homogeneous-product Cournot duopoly is P = 100 - 2Q, where Q = Q1 + Q2 (Firm…

A: Market demand: The demand for a product and who wants to buy it is referred to as the market demand.…

Q: What would the Herfindahl-Hirschman Index (HHI) be in each of the following situations? 1 firm with…

A: The HHI is calculated by squaring each rival firm's market share and then adding the resulting…

Q: You are given the market demand function Q = 3400 – 1000p, and that each duopoly firm's marginal…

A:

Q: Consider an industry composed of only two firms, each producing an identical product. The two firms…

A: We have stackleberg competition between two firms and they both have identical costs.

Q: The market demand in a homogeneous-product Cournot duopoly is P = 100 - 2Q, where Q = Q1 + Q2 (Firm…

A: Cournot duopoly: Cournot duopoly, often known as Cournot competition, is an imperfect competition…

Q: Based on United States Census Bureau data for 2017, for the utilities (electricity and gas) industry…

A: The ratios C4 and Herfindahl-Hirschman(HH) index calculated may differ for when calculated for a…

Q: Suppose that the most popular car dealer in your area sells 2 percent of all vehicles. Instructions:…

A: Herfindahl index (HHI) can be calculated by using the following formula.

Q: Suppose an industry is composed of eight firms with the following market shares:A       30%      E…

A: The concentration of market is calculated by the Herfindahl-Hirschman Index (HHI). The value of HHI…

Q: What is the name for the condition where a firm will not take action without considering the…

A: The above-mentioned condition usually occurs in an oligopoly market. Here, there are few sellers…

Q: Assume an industry has 18 firms. Top two firms have the market share 10 percent each and rest of the…

A:

Q: Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other…

A: The Hefindahl Hirschman index (HHI)  is the measure of market concentration. The value of HHI index…

Q: 8. Consider a Stackelberg duopoly with the following inverse demand function: P = 100 − 2Q1 − 2Q2.…

A: Profit function of Follower: πL = (P-MCL)*QL  πL= (100-2QL-2QF-2)*QL πL=(98-2QF)QL-2QL2 πL= 98-2QF -…

Q: Sort each of the scenarios as to whether or not they are characteristic of price leadership. Assume…

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Q: The market demand in a homogeneous-product Cournot duopoly is P = 113 - 2.2Q, where Q = Q1 + Q2…

A: For the level of output and profits when Firm 2 cheats and Firm 1 colludes , firstly we find the…