In: Economics
Exhibit 25-3
|
Firms |
Market Share |
|
A |
7% |
|
B |
12% |
|
C |
3% |
|
D |
9% |
|
E |
10% |
|
F |
20% |
|
G |
6% |
|
H |
6% |
|
I |
14% |
|
J |
5% |
|
K |
5% |
|
L |
3% |
Refer to Exhibit 25-3. The four-firm concentration ratio for this industry is
| a. |
46 percent. |
|
| b. |
49 percent. |
|
| c. |
56 percent. |
|
| d. |
44 percent. |
|
| e. |
This cannot be determined without further information. |
Refer to Exhibit 25-3. The Herfindahl Index for this industry is currently
| a. |
10,000. |
|
| b. |
840. |
|
| c. |
1,980. |
|
| d. |
1,330. |
|
| e. |
1,110. |
Refer to Exhibit 25-3. The Justice Department would consider this industry to be
| a. |
concentrated, because the top four firms together control more than 80 percent of the market share. |
|
| b. |
concentrated, because there are fewer than 100 firms in the industry. |
|
| c. |
unconcentrated, because there is more than 1 firm in the industry. |
|
| d. |
unconcentrated, because the Herfindahl index is less than 1,800. |
|
| e. |
unconcentrated, because the Herfindahl index is more than 1,800. |