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Homework Week 5_jh

# Homework Week 5_jh - .30.25.10.05=.70 Industry...

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Week 5: HW Problems and Exercises : Answers are to be posted in the DROP BOX , No Later Than Sunday Midnight EST (Please highlight your answers in Red. Thank You) The top four firms in industry A have market shares of 30, 25, 10 and 5% respectively. The top four firms in industry B have market shares of 15, 12, 8 and 4 % respectively. A. Calculate the four firm concentration ratios for the two industries. Which industry is more concentrated? Industry A
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Unformatted text preview: .30+.25+.10+.05=.70 Industry B .15+.12+.08+.05=.39 The industry that is more concentrated is Industry A. B. Calculate the Herfindahl - Hirschman Index for each industry Industry A 30*30+25*25+10*10+5*5=1,650 Industry B 15*15+12*12+8*8+4*4=449 Four firm concentration for industry A=Market share of four firms=(30+25+10+5)=70% Four firm concentration for industry B=Market share of four firms=(15+12+8+4)=39% Industry A is more concentrated....
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