Subject: Resource Allocation

Directions: Review the following table which shows the unit market share and the market concentration for a market with 15 brands in the marketplace - and then answer the questions below.

Brand Unit Sales Unit Market Share Market Concentration 10,000 25.0% 9,000 22.5% Top 3 brands/firms 5,000 12.5% 60.0% 4,000 10.0% Top 4 brands/firms 3,000 7.5% 70.0% 2,000 5.0% Top 5 brands/firms 1,000 2.5% 77.5% 1,000 2.5% Herfindahl Index 1,000 2.5% 0.151 1,000 2.5% Herfindahl Index Minimum 1,000 2.5% 0.067 500 1.3% 500 1.3% 500 1.3% 500 1.3%