View the step-by-step solution to:

Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms.

please answer the 4 questions below:


Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms.

Market Share

Firms

2008

2013

A

B

C

D

E

F

G

H

I

G

26%

21%

16%

10%

9%

7%

4%

3%

2%

2%

22%

23%

19%

9%

8%

7%

6%

4%

1%

1%

1. Calculate the concentration ratio CR4 and the concentration ratio CR8 for 2008 and 2013

2. Calculate the Herfindahl-Hirschmann Index (HHI) for 2008 and 2013

3. Using the CR4, CR8, and HHI, analyze the evolution of the seller concentration in the industry. Has the industry become more or less concentrated?

4. Using the CR4, CR8, and HHI, analyze the evolution of the potential market power of firms in the industry.

Top Answer

Q1 (a) Calculate Concentration ratio CR4 for 2008 - CR4 or four-firm concentration ratio is the sum total of percentage... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online