PROBLEM SET 9

# PROBLEM SET 9 - PROBLEM SET 9 Oligopoly Department of...

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Unformatted text preview: PROBLEM SET 9 Oligopoly Department of Economics Professor William J. Stull Temple University Economics 1902 A. Rice Rice production in a certain country has historically been controlled by six firms. No importation of foreign rice is permitted. The market shares for these firms in 1960, 1970, 1980, and 1990 are shown in the table below. Market Share (%)-------------------------------------------------------------------- Firm 1960 1970 1980 1990------------------------------------------------------------------------------------------------ Mandy Davies, Inc. 1.8 6.9 13.6 22.2 Grantland Industries 19.9 26.7 28.1 28.9 Edgar Bourroughs, Ltd. 53.8 36.5 28.2 20.0 Elmer Commodities 11.2 12.9 > 11.0 Oroni Corporation 7.5 6.2 9.5 13.1 The Jerry Group 5.8 10.8 6.6 4.8------------------------------------------------------------------------------------------------------------ Concentration Ratio > > > >------------------------------------------------------------ Herfindahl-Hirschman Index > > > >------------------------------------------------------------ 1. Compute the missing market share figure for 1980 __________ 2. Based on the numbers in the table, which firm achieved the most success over the period from 1960 to 1990. ____________ 3. Explain your answer to the previous question. _______________________________ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ 4. Compute the (4 firm) concentration ratio for each year and enter into the appropriate spaces at the bottom of the table. 5. Compute the Herfindahl-Hirschman Index for each year and enter into the appropriate spaces at the bottom of the table. 6. True or False. The rice industry became more competitive between 1960 and 1990. ____________ 7. Explain your answer to the previous question. _______________________________ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ 8. True or False. The rice industry was effectively competitive by 1990. ____________ 9. Explain your answer to the previous question. Explain your answer to the previous question....
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## This note was uploaded on 04/28/2011 for the course ECON 1102 taught by Professor Tomczyk during the Spring '09 term at Temple.

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PROBLEM SET 9 - PROBLEM SET 9 Oligopoly Department of...

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