Suppose there are ten firms that occupy the Odell, Oregon cherry ...

[jasdeep_brar]

Suppose there are ten firms that occupy the Odell, Oregon cherry pie market. The market share of each firm is listed in the above table.
 
  a) What is the four-firm concentration ratio in this market?
  b) What is the Herfindahl-Hirschman Index for this market?
  c) If Firm H and Firm A merge, what is the new Herfindahl-Hirschman Index for this market?
  d) A severe winter causes every firm except A, B, and E to close. With only these three firms operating, Firm A's market share is 71 percent, Firm B's market share is 23 percent, and Firm C's market share is 6 percent. What is the Herfindahl-Hirschman Index for this market now?

Question 2

If the government assigns private property rights to a common resource, then the
 
  A) resource is under-utilized.
  B) marginal private cost becomes equal to the marginal social cost.
  C) government needs to set a quota to achieve efficiency.
  D) None of the above answers is correct.

[Sophiapenny]

Answer to Question 1

a) The four-firm concentration rate is 74 percent.
b) The Herfindahl-Hirschman Index is 1,782.
c) Once firms H and A merge, the new Herfindahl-Hirschman Index is 2,038.
d) The Herfindahl-Hirschman Index is now 5,606.

Answer to Question 2

B

[jasdeep_brar]

Thanks for the timely response, appreciate it

[kusterl]

YES! Correct, THANKS for helping me on my review