Question 1

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. What is the Herfindahl-Hirschman index in the market for cookies in Eatsweetland?

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-The cookie industry in Eatsweetland consists of...

Question 2

-The table above lists the market shares of the twenty makers of personal computers. The Herfindahl-Hirschman Index for this industry equals

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-The table above lists the market shares...

Question 3

If a market is shared equally by four firms, the Herfindahl-Hirschman Index is

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Question 4

There are six firms in an industry, with market shares of 50 percent, 25 percent, 10 percent, 10 percent, 3 percent and 2 percent. The four firm concentration ratio is ________, and the HHI is ________.

Accepted Answer

The four-firm concentration ratio is calculated by adding up the market shares of the top four firms in the industry, which in this case is 50 + 25 + 10 + 10 = 95. 
The Herfindahl-Hirschman Index (HHI) is calculated by squaring each firm's market share and adding up the results, so in this case:

(0.5^2) + (0.25^2) + (0.1^2) + (0.1^2) + (0.03^2) + (0.02^2) = 0.3126

To convert this to the HHI, we multiply by 10,000, so the HHI is 3,126.

Therefore, the correct answer is B.

Question 5

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index

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-The table above lists the market shares...

Question 6

Suppose that there are 10 firms in an industry, each accounting for 10 percent of industry sales. Two of these firms decide to merge. Which of the following statements about the impact of this merger is (are) INCORRECT?

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Question 7

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would

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-The table above lists the market shares...

Question 8

-The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration equals

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-The table above lists the market shares...

Question 9

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. Which of the following best describes the structure of the market for cookies in Eatsweetland?

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-The cookie industry in Eatsweetland consists of...

Question 10

In an oligopoly with two firms, one firm's share of the market is 70 percent. The Herfindahl-Hirschman Index is ________.

Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by adding the squares of the market shares of all the firms in the industry. In this case, there are only two firms, one with a 70% market share and the other with a 30% market share. Therefore, the HHI is calculated as (70^2 + 30^2) = 5,800.

Question 11

If a market is shared equally by 200 firms the Herfindahl-Hirschman Index is

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Question 12

There are 6 firms in a market and the market shares of the firms are 40 percent, 30 percent, 10 percent, 8 percent, 7 percent, and 5 percent. The Herfindahl-Hirschman index is

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Question 13

If a market is shared equally by 100 firms, the Herfindahl-Hirschman Index is

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Question 14

-The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration ratio tells us that

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-The table above lists the market shares...

Question 15

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. What is the four-firm concentration ratio in Eatsweetland's cookie industry?

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-The cookie industry in Eatsweetland consists of...

Question 16

If there are five firms in an industry, each with a market share of 20 percent, the Herfindahl-Hirschman Index (HHI) of concentration is

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Question 17

Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. Plumper's share is 30 percent. Drippy's share is 20 percent. Kool Kid's share is 10 percent. Nappomatic's share is 10 percent. The Herfindahl-Hirschman Index in this industry is

Accepted Answer

To calculate the Herfindahl-Hirschman Index (HHI), you need to square the market shares of each firm in the industry and sum them up.

HHI = (0.30)^2 + (0.30)^2 + (0.20)^2 + (0.10)^2 + (0.10)^2 
HHI = 0.09 + 0.09 + 0.04 + 0.01 + 0.01 
HHI = 0.24

Then, multiply the result by 10,000 to get the final HHI:

HHI = 2,400

Therefore, the correct answer is D, with an HHI of 2,400 indicating a high level of concentration in the industry.

Question 18

The Herfindahl-Hirschman Index for a monopoly is

Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of market shares of all firms in the industry. For a monopoly, there is only one firm with a 100% market share. Therefore, the HHI for a monopoly would be 10,000 (100% squared).

Question 19

-Based on the above table, which shows the firms and sales in an industry, what is the four-firm concentration ratio?

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-Based on the above table, which shows...

Question 20

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. The U.S. Department of Justice would classify the market for cookies in Eatsweetland as

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-The cookie industry in Eatsweetland consists of...

Quiz 10: Organizing Production

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. What is the Herfindahl-Hirschman index in the market for cookies in Eatsweetland?

-The table above lists the market shares of the twenty makers of personal computers. The Herfindahl-Hirschman Index for this industry equals

If a market is shared equally by four firms, the Herfindahl-Hirschman Index is

There are six firms in an industry, with market shares of 50 percent, 25 percent, 10 percent, 10 percent, 3 percent and 2 percent. The four firm concentration ratio is , and the HHI is .

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index

Suppose that there are 10 firms in an industry, each accounting for 10 percent of industry sales. Two of these firms decide to merge. Which of the following statements about the impact of this merger is (are) INCORRECT?

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would

-The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration equals

In an oligopoly with two firms, one firm's share of the market is 70 percent. The Herfindahl-Hirschman Index is ________.

If a market is shared equally by 200 firms the Herfindahl-Hirschman Index is

There are 6 firms in a market and the market shares of the firms are 40 percent, 30 percent, 10 percent, 8 percent, 7 percent, and 5 percent. The Herfindahl-Hirschman index is

If a market is shared equally by 100 firms, the Herfindahl-Hirschman Index is

-The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration ratio tells us that

-The cookie industry in Eatsweetland consists of 15 firms. The industry sales are $80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of $3 million each. What is the four-firm concentration ratio in Eatsweetland's cookie industry?

If there are five firms in an industry, each with a market share of 20 percent, the Herfindahl-Hirschman Index (HHI) of concentration is

Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. Plumper's share is 30 percent. Drippy's share is 20 percent. Kool Kid's share is 10 percent. Nappomatic's share is 10 percent. The Herfindahl-Hirschman Index in this industry is

The Herfindahl-Hirschman Index for a monopoly is

-Based on the above table, which shows the firms and sales in an industry, what is the four-firm concentration ratio?