Market Share Firm ( % ) А 25 В 22 18 16 E 15 F 4 Suppose that firms B and D in this table merged into a single firm. The four-firm concentration ratio and the Herfindahl index would
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- Consider an industry with 4 firms. All 4 firms and their yearly sales are listed in the table below: Firms and Yearly Sales Firm Yearly Sales (in Millions) Jamco $104 Kami Inc $95 Lumperson $86 $69 Montour & Sons What is the Herfindahl-Hirschman Index (HHI) for this industry?Firm Market Share (%) A 40 B 30 C 20 D 5 E 5 Refer to the data. If Firm B merged with Firm E, the industry's four-firm concentration ratio would ____ and its Herfindahl index would ____. Multiple Choice rise; rise fall; rise remain the same; rise remain the same; fallMarket Share % 25 8 5 4 4 2.5 2 1.5 Grocery Store Walmart Kroger Albertsons Ahold Delhaize Publix H-E-B Aldi Group Meijer 48 Independent Grocers @ 1% each Use the above information to answer the following questions. What is the four-firm concentration ratio before the merger? What is the market structure? (Click to select) What is the industry HHI before the merger? Kroger and Albertsons propose a merger. What is the industry HHI after the merger?
- There are four firms in the cement industry in Richland. Firm A has a market share of 30%, Firm B has a market share of 20%, and Firm C has a market share of 25%. The Herfindahl-Hirschman Index for the cement industry is 1925 2550 25 4000Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. AFC (P) AVC (P) Output (in packs) 0 1 2 3 4 5 6 7 8 9 10 60.00 30.00 20.00 15.00 12.00 10.00 8.57 7.50 6.67 6.00 45.00 42.50 40.00 37.50 37.00 37.50 38.57 40.63 43.33 46.50 ATC (P) 105.00 72.50 60.00 52.50 49.00 47.50 47.14 48.13 50.00 52.50 MC (P) 45.00 40.00 35.00 30.00 35.00 40.00 45.00 55.00 65.00 75.00 A. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run? Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack? B. Assuming that the product price is P42 per pack, answer the same questions in letter A. C. Because of increasing sellers of masks in the market, the product's price further decreased to P32 per pack. Again, answer the same questions in letter A. D.…Firm Market Share (%) A B C D E F 30 22 18 17 7 6 Refer to the data. Suppose that firms in this industry split up such that there were 50 firms, each with a 2 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be Multiple Choice 8 percent and 200. 8 percent and 8. 200 percent and 16. 100 percent and 10,000.
- An industry has the following market shares: 30% 20% 10% 5% What is the Pre-merger index? What is the post-merger index? What is the increase or decrease in the index after the merger? Should a merger between the 1st and 3rd largest firms be allowed based on the Herfindhal Index? Why or why notFirm Market Share (%) A 40 B 30 C 20 D 5 E 5 Refer to the data. If Firm B merged with Firm E, the industry's four-firm concentration ratio would ____ and its Herfindahl index would ____.Firm A B C D E F If firms E and F in this table merged into a single firm, the Herfindahl index would Market Share (%) 25 15 15 15 15 15 Multiple Choice O O rise, as would the four-firm concentration ratio. not change.
- 1) Consider the following hypothetical industries which are both comprised by 8 firms. In industry A sales are given by 1000, 800, 600, 600, 450, 200, 100, 100 and in industry B by 2000, 500, 500, 200, 150, 150, 150, 100. (a) Calculate the five-firm concentration ratio for each industry. (b) Calculate each industry's H Index and the numbers equivalent. How can the latter be interpreted? (c) Which industry do you think exhibits the most concentration? 2) We defined the Lerner Index as LI = 1/µ where u is the absolute value of the elasticity of demand. We also showed that LI can be alternatively expressed as (P – MC)/P . Use these relationships to show that LI can never exceed 1. What does this imply is the minimum demand elasticity we should ever observe for a monopolist? 3) Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm produces and sells 19 units per period, while firm 3's periodic production and sales are 15 units. The (inverse) market…Give typing answer with explanation and conclusion Firm Market Share (%) A 50 B 25 C 12 D 10 E 3 Refer to the data. If Firm B merged with Firm C, the industry's four-firm concentration ratio would ____ and its Herfindahl index would ____.Market Share Firm (%) A 25 22 C. 18 D. 16 15 4 Suppose that firms B and D in this table merged into a single firm. The four-firm concentration ratio and the Herfindahl index would Multiple Choice rise and remain unchanged, respectively both rise