Respective shares of the local hamburger market

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Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 28%, 26%, 23%, 10%, 7%, 4%, and 2%.

a. What is the four-firm concentration ratio of the hamburger industry in this town? %.?

b. What is the Herfindahl index for the hamburger industry in this town? .

c. If the top three sellers combined to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index?

The four-firm concentration ratio would be %?. The Herfindahl index would be .

Reference no: EM131094401

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