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Using the graph below answer these problems

• find out the four-firm concentration ratios for 2006 and 2011. Analyze the industry changes during this five-year period.

• find out the eight-firm concentration ratios for 2006 and 2011. Does this index give you any different indication about changes in the industry over the same period?

• find out the Herfindahl-Hirschman Indexes for 2006 and 2011. What information does this index tell you about changes in the industry? How does this information differ from the four-firm and eight-firm indexes?

• Hypothesize what you think might have happened to supply, demand, and price of products in this industry from 2006 to 2011. Use charts, if appropriate, to illustrate your response

Firm Market Share 2006 Market Share 2011
A 10% 32%
B 8% 5%
C 12% 12%
D 20% 29%
E 21% 9%
F 2% 1%
G 5% 4%
H 6% 2%

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M945404

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