Select the false statement.Both CR3 and CR4 concentration measures point to the same market(either A or B) having more market power.○ The HHI of market A must be larger than the HHI of market B.O The HHI of market B is less than 1,798 (in units of squared percent).(Hint: for positive X and Y, (X + Y) 2 > X² + y²)○ The 6th largest firm in market B captures less than 8 percent of themarket. Suppose we have two markets, A and B, each consisting of sevenfirms. The market shares of the 5 largest firms (ordered by marketshare) are shown in the table below.Firm rank Market share (%)Market A Market B12022220203202042015515156??7??

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration. It measures the size of…

Answered: Suppose we have two markets, A and B,…

Suppose we have two markets, A and B, each consisting of seven firms. The market shares of the 5 largest firms (ordered by market share) are shown in the table below.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The 1994 market shares of the firms in the market for paper towels in the United States were: Procter & Gamble 37%, Scott 18%, James River 12%, Georgia-Pacific 11%, Kimberly-Clark 4%, with the remaining 18% spread among several smaller firms. a. Find the HHI for the market. (Note: you must create imaginary market shares for the firms in “Other” when calculating HHIs. The usual practice is to make the shares as large as possible, given that they are at most as large as the smallest listed firm, which in this case was Kimberly-Clark.) b. One way of putting some intuition behind the HHI is to calculate how many equal-sized firms would generate the HHI of some actual industry. To do so, calculate the HHI in terms of fractional market shares (e.g., use .48 instead of 48%, and do NOT multiply the sum by 10,000). Then, for n equal size firms, the HHI = n(si2) = n(1/n)2 = 1/n. Find the number of identical-sized firms that would generate the HHI you found in part a.
Microsoft is one of the leading software companies. Prior to 2000, Microsoft’s share of the market for personal computer operating systems stood above 80 per cent. However, since the twenty-first century Microsoft’s market share has steadily declined to 40 per cent. This is due to the rise in competing software producers such as Apple macOS (10%), Google's Android OS (35%), Linux Operating System (35%), and Apple iOS (5%). The market share of each company is provided in parentheses. Google and Linux have decided that it would be in their best interest to work together to serve the market. This is not common knowledge to the person’s outside of the companies. i. Draw how equilibrium price and quantity are determined in this industry. Hi does this refer to the monopoly market structure diagrams? 2. Allsmart’s demand curve is given by Q=10-P for its dishwashers. The marginal and average cost is $3 per dishwasher produced. Complete the following table. Photo below…
Microsoft is one of the leading software companies. Prior to 2000, Microsoft’s share of the market for personal computer operating systems stood above 80 per cent. However, since the twenty-first century Microsoft’s market share has steadily declined to 40 per cent. This is due to the rise in competing software producers such as Apple macOS (10%), Google's Android OS (35%), Linux Operating System (35%), and Apple iOS (5%). The market share of each company is provided in parentheses. Google and Linux have decided that it would be in their best interest to work together to serve the market. This is not common knowledge to the person’s outside of the companies. State what market structure existed prior to the 2000 and illustrate how equilibrium price and quantity are determined in this industry. Can excess profit be earned by Microsoft in the long run prior to the 2000. Explain. [3 marks] State what market structure exists in the twenty first century. Explain if excess profit will exist…
Microsoft is one of the leading software companies. Prior to 2000, Microsoft’s share of the market for personal computer operating systems stood above 80 per cent. However, since the twenty-first century Microsoft’s market share has steadily declined to 40 per cent. This is due to the rise in competing software producers such as Apple macOS (10%), Google's Android OS (35%), Linux Operating System (35%), and Apple iOS (5%). The market share of each company is provided in parentheses. Google and Linux have decided that it would be in their best interest to work together to serve the market. This is not common knowledge to the person’s outside of the companies. i. State what market structure existed prior to the 2000 and illustrate how equilibrium price and quantity are determined in this industry. Can excess profit be earned by Microsoft in the long run prior to the 2000. Explain. State what market structure exists in the twenty first century. Explain if excess…
Microsoft is one of the leading software companies. Prior to 2000, Microsoft’s share of the market for personal computer operating systems stood above 80 per cent. However, since the twenty-first century Microsoft’s market share has steadily declined to 40 per cent. This is due to the rise in competing software producers such as Apple macOS (10%), Google's Android OS (35%), Linux Operating System (35%), and Apple iOS (5%). The market share of each company is provided in parentheses. Google and Linux have decided that it would be in their best interest to work together to serve the market. This is not common knowledge to the person’s outside of the companies. State what market structure existed prior to the 2000 and illustrate how equilibrium price and quantity are determined in this industry.
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.A measure called Herfindahl-Hirschman Index is used to measure the degree of competition in an industry. The HHI is the square of each firm’s market share summed over the firms in the industry. (Where a market share is the percentage of sales in the market accounted for by that firm). For example, if an industry contains only three firms and their market shares are 60%, 25%, and 15% then the HHI (by squaring each firm’s share and summing them) is 4450. Some economists classify the market structures according to HHI scores. An HHI below 1,500 indicates a strongly competitive market, between 1,500 and 2,500 indicates a somewhat competitive market, and over 2,500 indicates an oligopoly. Given the information in the table, calculate the HHI in this industry. If yahoo and Bing were to merge, what would the HHI be? Google 67% Yahoo 18 Bing 11 Ask 3 AOL 1
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