State the advantages and disadvantages of the ecofame index

Reference no: EM131401793

You're working at the Department of Justice. Ms. Ecofame has just developed a new index, the Ecofame index, which she argues is preferable to the Herfindahl index. The Ecofame index is calculated by cubing the market share of the top 10 firms in the industry.

a. Calculate an Ecofame guideline that would correspond to the Department of Justice guidelines.

b. State the advantages and disadvantages of the Ecofame index as compared to the Herfindahl index.

Reference no: EM131401793

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