2. Company Firm A Firm B Firm C Firm D Firm D Firm F Sales 29.50 36.90 47.20 58.
ID: 1092638 • Letter: 2
Question
2.
Company
Firm A
Firm B
Firm C
Firm D
Firm D
Firm F
Sales
29.50
36.90
47.20
58.10
42.93
12.34
Looking at the data, what type of market structure would you assume for these firms? 2.2. Derive the HHI the top 2 firms and discuss the market structure. 2.3. Suppose the two largest and the smallest firms decide to merge; as an analysis with the Federal Trade Commission in Washington, D. C., what would be your recommendations?
Company
Firm A
Firm B
Firm C
Firm D
Firm D
Firm F
Sales
29.50
36.90
47.20
58.10
42.93
12.34
Explanation / Answer
Total Sales = 29.50+36.90+47.20+58.10+42.93+12.34 =
Share of sales for each company
Company
Firm A
Firm B
Firm C
Firm D
Firm E
Firm F
Sales
0.1300
0.1625
0.2079
0.2560
0.1891
0.0543
The Herfindahl index (also known as Herfindahl
Company
Firm A
Firm B
Firm C
Firm D
Firm E
Firm F
Sales
0.1300
0.1625
0.2079
0.2560
0.1891
0.0543
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