11. The accompanying table shows the Herfindahl-Hirschman Index (HHI) for the restaurant, cereal, movie, and laundry...
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11. The accompanying table shows the Herfindahl-Hirschman Index (HHI) for the restaurant, cereal, movie, and laundry detergent industries as well as the advertising expenditures of the top 10 firms in cach industry. Use the information in the table to answer the following questions. Advertising expenditures (millions) Industry HHI Restaurants 179 $1,784 Cereal 2,098 732 Movie studios 918 3,324 Laundry detergent 2,068 132 a. Which market structure-oligopoly or monopolistic competition-best character- izes cach of the industries? b. Based on your answer to part a, which type of market structure has higher adver- tising expenditures? Use the characteristics of cach market structure to explain why this relationship might exist. 11. The accompanying table shows the Herfindahl-Hirschman Index (HHI) for the restaurant, cereal, movie, and laundry detergent industries as well as the advertising expenditures of the top 10 firms in cach industry. Use the information in the table to answer the following questions. Advertising expenditures (millions) Industry HHI Restaurants 179 $1,784 Cereal 2,098 732 Movie studios 918 3,324 Laundry detergent 2,068 132 a. Which market structure-oligopoly or monopolistic competition-best character- izes cach of the industries? b. Based on your answer to part a, which type of market structure has higher adver- tising expenditures? Use the characteristics of cach market structure to explain why this relationship might exist.
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a The HHI index reflects the level of competitiveness in the industry The restaurant industry has HH... View the full answer
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