(a) For each of the following calculate the four-firm concentration ratio and the Herfindahl index.
Industry 1: 44 firms in the industry. The four largest firms each have a 15% market share, the remaining firms each have a 1% market share.
Industry 2: 7 firms in the industry. The six largest firms each have a 15% market share, the remaining firm has a 10% market share.
(b) Is it possible to state with certainty which industry is more competitive? Explain your answer by using your calculations from (a) in your explanation.

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The Answer of (a) For each of the following calculate the four-firm concentration ratio and the Herfindahl index.
Industry 1: 44 firms in the industry. The four largest firms each have a 15% market share, the remaining firms each have a 1% market share.
Industry 2: 7 firms in the industry. The six largest firms each have a 15% market share, the remaining firm has a 10% market share.
(b) Is it possible to state with certainty which industry is more competitive? Explain your answer by using your calculations from (a) in your explanation.

(A) for Each of the Following Calculate the Four-Firm Concentration