A market has six competitors in it, with the following total sales amounts: FIRM Total sales A
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Question:
- A market has six competitors in it, with the following total sales amounts:
FIRM | Total sales |
A | $ 200 (million) |
B | 500 |
C | 300 |
D | 700 |
E | 600 |
F | 800 |
G | 900 |
a. Calculate the four firm concentration ratio for this industry.
b. Calculate the Herfindahl index for this market.
c. Based on your calculation in (b), would you classify this market as moderately or highly oligopolistic? Why?
Related Book For
Applying International Financial Reporting Standards
ISBN: 978-0730302124
3rd edition
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise
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