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Imagine that there is an industry made up of 300 firms. You have data on the 9 largest firms below. You dont have the revenues
Imagine that there is an industry made up of 300 firms. You have data on the 9 largest firms below. You dont have the revenues for 291 of the firms in the industry but one piece of critical information that you do know is that Company B has 12.5% market share.
Company Name | Annual Revenues ($) |
A | 100 |
B | 80 |
C | 64 |
D | 63 |
E | 38 |
F | 30 |
G | 22 |
H | 19 |
I | 19 |
Answer the following questions (Round to 2 decimals if you need to round):
- Assuming the 10th company (company not listed above in the data) would not have to be included in the HHI because it didnt meet the threshold for inclusion in an HHI calculation, what is the maximum revenue that this company could have?
- Assume that the 291 other firms in the industry (ones for which you have no data on) split the industry revenue not covered by the 9 firms above exactly equally. How much revenue would each have?
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