contestada

Suppose the pizza market is divided as follows:Firm Market Share Pizza Hut 207% Domino's 17.0Little Caesars 6.7Pizza Inn/Pantera's 3.6 Round Table 2.0All others(50 firms) 1.0% per firmA. What is the approximate Herfindahl index? Instructions: Round your answer to two decimal places. B. Based on this Herfindahl index calculation, how would you describe its market structure? C. What is the four-firm concentration ratio?

Respuesta :

Answer:

829.34

The market structure is not concentrated

0.48

Explanation:

The HHI is calculated by squaring the market share of each firm in the industry and then adding the squares together.

20.7² + 17² + 6.7² + 3.6²+ 2² + 50(1²) = 428.49 + 289 + 44.89 + 12.96 + 4 + 50 = 829.34

The market structure is not concentrated because the HHI is less than 100

The four firm concentration ratio calculates the concentration ratio of the 4 largest firms in an industry.  

0.207 + 0.17 + 0.067 + 0.036 = 0.48 or 48%

Otras preguntas