Consider two industries industry w and industry x in

This preview shows page 3 - 4 out of 4 pages.

133) Consider two industries, industry W and industry X. In industry W there are five companies, each with amarket share of 20% of total sales. In industry X, there are six companies. One company has a 50% market shareand each of the other five firms has a market share of 10%.a.Calculate the four-firm concentration ratio for each industry.b.Calculate the Herfindahl-Hirschman Index (HHI) for each industry.c.What do the values of the two concentration measures imply about the degree of market power in thetwo industries?
Diff: 3Page Ref: 506/506Topic: Characteristics of MonopolyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how public policies affectmonopoliesAACSB: Analytic Skills43
Figure 15-8134)Refer to Figure 15-8to answer the following questions.a.What quantity will this monopoly produce and what price will it charge?b.Suppose the government decides to regulate this monopoly and imposes a price ceiling of $25. Now whatquantity will the monopoly produce and what price will it charge?c.Will every consumer who is willing to pay the ceiling price of $25 be able to buy the product? Brieflyexplain.
Diff: 2Page Ref: 508/508Topic: Government Policy toward MonopolyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how public policies affectmonopoliesAACSB: Analytic Skills44

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture