Computing the four firm concentration ratio

Assignment Help Econometrics

Reference no: EM1376298

Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent. How would you explain this industry?Suppose the demand for the product rises and pushes the price for the good.What long-run adjustments you expect following this change in demand.
Now consider the industry has 20 Firms but the CR for the industry is 80% instead of 30%.How would describe this industry?What are some reasons why this industry has a high CR while the other industry had a low CR? Is it possible for smaller firms to thrive and profit in such an industry?How?contrast the effects on market efficiency if the dominating firm use a price leadership model versus a contestable markets models.

Reference no: EM1376298

Questions Cloud

Compute point price elasticity of demand : Run OLS to estimate the inverse demand function(P = f(Q)), determine how much confidence do you have in this estimated equation? Apply algebra to then find the direct demand function

Estimate the trend in units per year : A linear trend equation for sales of form Qt = a + bt was estimated using yearly sales information for the period 2000 - 2007. The results of regression are given below:

Estimate the value of for sales level : Over the last one year the Four Winds Novelty Corporation has recorded its internet sales and its monthly total variable costs for a particular novelty item as demonstrate in the following table.

Interpretation for the regression coefficient : Chez Henri is a restaurant chain that operates in forty different cities. It employed an economist to determine the factors affecting the demand for its sales.

Computing the four firm concentration ratio : Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent.

Determine the outlook of fictitious economy : According to the following economic indicators, estimate the outlook of this fictitious economy. Although I know what these indicators mean,

Define unemployment in the cattle industry : Determine unemployment in the cattle Industry. Explain a current status of unemployment in the Cattle Industry.

How the detergent cartel would set price and output : Illustrate graphically how the detergent cartel would set price and output and do you think this laundry detergent cartel with P&G and Lever will be stable for the next 5 years?

Concentration rate and the herfindahl-hirschman index : If a corporation operates in a highly competitive industry and competes against many other companies. In the last some years, many new companies have entered the industry and firm now earns a return on investment very close to prevailing interest rat..

User Account

All Pages