What is the herfindahl index for the hamburger industry

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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): 25%, 24%, 20%, 12%, 9%, 6%, and 4%.

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

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

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: EM13796420

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