The agencies generally consider markets in which the HHI is between 1,500 and 2,500 points to be moderately concentrated, and consider markets in which the HHI is in excess of 2,500 points to be highly concentrated. What would the Herfindahl-Hirschman Index (HHI) be in each of the following situations? 10 firms, each with 10 percent of the market 4 firms, each with 25 percent of the market 2 firms, each with 50 percent of the market 1 firm with a monopoly in the market
The agencies generally consider markets in which the HHI is between 1,500 and 2,500 points to be moderately concentrated, and consider markets in which the HHI is in excess of 2,500 points to be highly concentrated. What would the Herfindahl-Hirschman Index (HHI) be in each of the following situations? 10 firms, each with 10 percent of the market 4 firms, each with 25 percent of the market 2 firms, each with 50 percent of the market 1 firm with a monopoly in the market
Chapter15: Oligopoly And Strategic Behavior
Section: Chapter Questions
Problem 9P
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The agencies generally consider markets in which the HHI is between 1,500 and 2,500 points to be moderately concentrated, and consider markets in which the HHI is in excess of 2,500 points to be highly concentrated.
- What would the Herfindahl-Hirschman Index (HHI) be in each of the following situations?
- 10 firms, each with 10 percent of the market
- 4 firms, each with 25 percent of the market
- 2 firms, each with 50 percent of the market
- 1 firm with a
monopoly in the market
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