This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 3. Oligopoly a. Ex Breakfast Cereal b. Because there are a few major cereal manufacturers and whenever one company does something new the other company has to do something to respond 4. Monopoly a. No competition there is no substitutes for the good Measures of Competition or concentration More competitive = less concentrated Less competitive = more concentrated 1. concentration ratio a. % of sales accounted for by four largest firms in the industry 2. Herfindahl-Hirschman Index (HHI) a. Sum of the squared market shares DOJ Guidelines HHI< 1000 -Not concentrated 1000< HHI<1800 -Moderately concentrated HHI>1800 –Concentrated...
View Full Document
This note was uploaded on 05/03/2009 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.
- Spring '08