Calculate the herfendahl index. show your calculations.., Ask an Expert

Economics

Suppose that currently, Verizon has 30% of the cell phone market, followed by Sprint with 25%, ATT with 20%, and T-Mobile with 15%. Suppose there are 10 other companies, each with 1%. (Each answer worth 1 point)

a. find out the Herfendahl Index. (Show your calculations.)

b. How would you characterize the nature of competition in this market?

c. describe/describe one submarket with distinct competitive pressures.

d. Use Sutton's concept of endogenous sunk costs to describe why it is difficult for new firms to enter this industry.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M968320

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question you are on the city council and are considering a

Question: You are on the city council and are considering a law to control rents below the free-market rent. What would be the effect of this rent control law in the short-run? In the long run? Be sure to explain why you ...

Question during the 1990s the age cohort that grew the most

Question: During the 1990s, the age cohort that grew the most rapidly was the 45-54 cohort, which has the highest saving rate. Yet during that same period, the personal saving rate as reported by the BEA declined sharply ...

Quesiton suppose the dollar is overvalued by 20 and the

Quesiton: Suppose the dollar is overvalued by 20% and the Secretary of the Treasury announces that he hopes it will soon return to equilibrium. How would this announcement affect your sales if you were in the following b ...

Question -most people conclude that the costs outweigh the

Question - Most people conclude that the costs outweigh the benefits of a suicide bombing attack; yet, some people willingly engage in such activity. Are they miscalculating the cost/benefit problem, or do they simply va ...

Question the us economy did not have any increase in the

Question: The US economy did not have any increase in the core rate of inflation in 1999-2000 with the economy at full employment; instead, it had a stock market bubble. Many people subsequently held Alan Greenspan and t ...

Question cost functions a part of the definition of profit

Question: Cost functions, a part of the definition of profit, are useful to gauge the performance of the business. Suppose an economist estimated that the cost function of single-product firm as : C(Q) = 10 + 3Q + 3Q 2 + ...

Question - read the article to answer the following

Question - Read the article to answer the following questions: Article - Insight: Komen charity under microscope for funding, science by Sharon Begley and Janet Roberts. 1. What are some of the positives about how the Su ...

Question dp inc is a us based firm that sells farm

Question: DP, Inc. is a U.S. based firm that sells farm equipment and faces demand given by P = 4,000 - Q, where P denotes price in dollars and Q is quantity of units sold per month. In its East coast factory, the firm's ...

Question 1 what determines market demand for gasoline why2

Question: 1. What determines market demand for gasoline? Why? 2. How does market supply come about? What factors influence If no, why not? 3. How do shifts in demand and supply interact? Translate the results in affectin ...

Question select a specific health care organization and

Question: Select a specific health care organization and identify its mission statement. As the leader of the HR department, you have been asked to deliver an orientation presentation to new employees to introduce the or ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert