Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. If an industry is formed by six companies. Four companies have sales of $ 10 each, and two companies have sales of $ 5

1. If an industry is formed by six companies. Four companies have sales of $ 10 each, and two companies have sales of $ 5 each.
a. What is the concentration ratio of four companies for this industry? and what does it mean?
b. What is the Herfindahl-Hirschman index for this industry?
c. Explain the differences that occur from calculations with concentrations of 4 companies compared to calculations with HHI?

Please explain it thoroughly, Thankyou so much in advance!

Step by Step Solution

3.48 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organic Chemistry

Authors: Graham Solomons, Craig Fryhle, Scott Snyder

11th edition

1118133579, 978-1118133576

More Books

Students also viewed these Economics questions

Question

Characterize the kind of leadership demonstrated by Steve Michaels.

Answered: 1 week ago