Author Question: Listed in the above table are the market shares for the firms in two different industries. Each ... (Read 109 times)

swpotter12

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Listed in the above table are the market shares for the firms in two different industries. Each industry has only eleven firms. Find the four-firm concentration ratio and the Herfindahl-Hirschman Index for each industry.
 
  What will be an ideal response?

Question 2

If a monopolist can perfectly price discriminate, then
 
  A) price equals average cost for each unit sold.
  B) price equals marginal cost for each unit sold.
  C) price equals marginal cost for the last unit sold.
  D) the firm can ignore the marginal cost curve.



strudel15

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Answer to Question 1

Industry A has a four-firm concentration ratio of 59 percent and a Herfindahl-Hirschman Index of 1,186. Industry B has a four-firm concentration ratio of 39 percent and Herfindahl-Hirschman Index of 914.

Answer to Question 2

C



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