Problem Set
Question # 00000185
Posted By:
Updated on: 07/23/2013 01:12 PM Due on: 07/17/2013
Complete the following problem :
The attached table represents the market share of the top eight firms in a hypothetical industry in 2006 and 2011.
- Calculate the four-firm concentration ratios for 2006 and 2011. Analyze the industry changes during this five-year period.
- Calculate the eight-firm concentration ratios for 2006 and 2011. Does this index give you any different indication about changes in the industry over the same period?
- Calculate the Herfindahl-Hirschman Indexes for 2006 and 2011. What information does this index tell you about changes in the industry? How does this information differ from the four-firm and eight-firm indexes?
- Hypothesize what you think might have happened to supply, demand, and price of products in this industry from 2006 to 2011. Use charts, if appropriate, to illustrate your response.
5-4 Homework: Problem Set Data
|
Firm |
Market Share 2006 |
Market Share 2011 |
|
A |
10% |
32% |
|
B |
8% |
5% |
|
C |
12% |
12% |
|
D |
20% |
29% |
|
E |
21% |
9% |
|
F |
2% |
1% |
|
G |
5% |
4% |
|
H |
6% |
2% |
-
Rating:
/5
Solution: Economic problem solution