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What is the four-firm concentration ratio

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Reference no: EM131281270

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%.

Instructions: Enter your answers as whole numbers.

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: EM131281270

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