econ203spr2008assign5_26001

# econ203spr2008assign5_26001 - H , and what value of n...

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ECON 203 Assignment 3, SPR2008 [10 points] DUE: WEEK BEGINNING ON MONDAY, APRIL 21, 2008 PROF. TAHA AL-SABEA Name: ID: Discussion Section (check one) : ± Friday 10am-11am ± Friday 11am-12noon ± Friday 12noon-1pm ± Friday 1am-2am ± Tuesday 6pm-7pm ± Thursday 6pm-7pm TA’s name (check one) : ± Xiao Huang ± Mihye Lee ± Pawel Szerszen This assignment is based on Chapter 11 of your textbook. 1. [5 points] Consider an industry with n ﬁrms, where n is an arbitrary positive integer. (a) If all ﬁrms have an equal share of the total output, what is the Herﬁndahl index H of this industry? Your answer should be in terms of n . (b) What is the lowest possible value of

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Unformatted text preview: H , and what value of n achieves this? What market model does this correspond to? 1 (c) What is the highest possible value of H , and what value of n achieves this? What market model does this correspond to? 2. [5 points] Give an example of an industry which you believe corresponds to the oligopoly market model. Try to look up data on the market shares of the major players in the industry you choose, and describe a strategy you could use to estimate the Herndahl index of the industry. What is your estimate of the Herndahl index of this industry? 2...
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## This note was uploaded on 09/26/2008 for the course ECON 203 taught by Professor Al-sabea during the Spring '05 term at USC.

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econ203spr2008assign5_26001 - H , and what value of n...

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