Question: Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23%,

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23%, 22%, 18%, 12%, 11%, 8%, and 6%. What is the four ‐ firm concentration ratio of the hamburger industry in this town? What is the Herfindahl index for the hamburger industry in this town? If the top three sellers combined to form a single firm, what would happen to the four ‐ firm concentration ratio and to the Herfindahl index?

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The fourfirm concentration ratio is 75 the Herfindahl Index is 1702 529 484 324 144 121 64 36 The ne... View full answer

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