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1. The following table gives market share data in percentages for three product markets: Laundry Detergent Toothpaste Shampoo and Conditioner Company Market Share Company Market
1. The following table gives market share data in percentages for three product markets: Laundry Detergent Toothpaste Shampoo and Conditioner Company Market Share Company Market Company Market Share Share Firm A 15 Firm G 14 Firm M 12 Firm B 2 Firm H 4 Firm N 52 Firm C 10 Firm I 16 Firm O 3 Firm D 20 Firm J 30 Firm P 1 Firm E 45 Firm K 35 Firm Q 30 Firm F 8 Firm L 1 Firm R 2 Total 100 100 100 a. Calculate the three-firm concentration ratio for each industry. b. Calculate each industry's HI Index. c. Which industry exhibits the most concentration according to: i. Four-firm concentration ratio ii. HI Index2. You are analyzing mergers (where two firms become one firm) for the U.S. government using Herfindahl - Hirschman Index. According to the merger guidelines, if the HI reaches the range of 1000 - 1800 after a merger, you will not allow the merger if it increased the HI by 150 points or more. Suppose you are analyzing a market where there are 13 firms, and they produce following quantities of output: Firm # Firm's Output 5,080 2,540 2,540 2,540 2,540 DOO Q UI AWN 1,270 1,270 1,270 1,270 10 1,270 11 1,270 12 1,270 13 1,270
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