What is the meaning of a four-firm concentration ratio

Assignment Help Business Economics

Reference no: EM131112677

What is the meaning of a four-firm concentration ratio of 30 percent? 85 percent? Suppose five firms in industry A have annual sales of 30, 30, 20, 10, and 10 percent of total industry sales. For the five firms in industry B, the figures are 60, 25, 5, 5, and 5 percent. Calculate the Herfindahl index for each industry. If industry B were at&t (60%) and T-Moble (25%) would the Justice Department allow the two firms to merge? Why or why not? If at&t had 20% of the market and T-Moble had 2% would the answer be the same? Why? What was the final outcome?

Reference no: EM131112677

Questions Cloud

Calculated by the expenditure apporach : Assume net exports are -$220, consumption is $5000, tax revenues are $1000, government purchases are $1500, and 2008 GDP calculated by the expenditure apporach is $8000.

Differ from pure competition in its basic characteristics : How does monopolistic competition differ from pure competition in its basic characteristics? From pure monopoly? Explain fully what product differentiation may involve. Explain how the entry of firms into its industry affects the demand curve facing ..

Suppose the market for pizza is perfectly competitive : Suppose the market for pizza is perfectly competitive. Furthermore, suppose the total cost curve for a typical pizzeria is TC = 2 + 12q2 where q represents the quantity of pizzas sold by a single pizzeria each day. How many firms will operate in this..

Suppose the market for widgets is perfectly competitive : Suppose the market for widgets is perfectly competitive. Furthermore, suppose the total cost curve for a typical firm in this market is TC = 128 + 3q2 where q represents the quantity of widgets sold by a single supplier. Suppose that there are 16 sel..

What is the meaning of a four-firm concentration ratio : What is the meaning of a four-firm concentration ratio of 30 percent? 85 percent? Suppose five firms in industry A have annual sales of 30, 30, 20, 10, and 10 percent of total industry sales. For the five firms in industry B, the figures are 60, 25, ..

What is concordias required rate of return on any new : What is the Beta coefficient for Concordia. What is Concordia's required rate of return on any new investments Explain your answers. What is the equation for the Security Market Line (SML)? Show the equation and graph the equation on a graph. Expla..

Explain prims and kruskals algorithm with some suitable : Explain Prim's and Kruskal's algorithm with some suitable examples. Also analyse algorithms. Give single source shortest path algorithm. Give the time complexity.

Cope with the pollution created by production : Consider the situation where firm y is downriver from firm x and must cope with the pollution created by production of x output. According to the Coase theorem, If firm x must purchase, from firm y, rights to pollute the river they share, firm x’s pr..

Water utilities purchases surface water for treatment : El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in fu..

User Account

All Pages