1. Use the table below to calculate the four-firm concentration ratio for the U.S. auto market....

 

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1. Use the table below to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a concentrated market or not? Market Share 19% Manufacturer GM Ford Toyota Chrysler 17% 14% 11% Honda 10% Nissan Hyundai 7% 5% Kia 4% Subaru 3% Volkswagen 3% 2. Use the table above to calculate the Herfindal-Hirschman Index for the U.S. auto market. Would the FTC approve a merger between GM and Ford? 3. Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make sense to you? 4. Does either the four-firm concentration ratio or the HHI directly measure the amount of competition in an industry? Why or why not? (In other words, what are some advantages and shortfalls of each measure of competition?) 1. Use the table below to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a concentrated market or not? Market Share 19% Manufacturer GM Ford Toyota Chrysler 17% 14% 11% Honda 10% Nissan Hyundai 7% 5% Kia 4% Subaru 3% Volkswagen 3% 2. Use the table above to calculate the Herfindal-Hirschman Index for the U.S. auto market. Would the FTC approve a merger between GM and Ford? 3. Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make sense to you? 4. Does either the four-firm concentration ratio or the HHI directly measure the amount of competition in an industry? Why or why not? (In other words, what are some advantages and shortfalls of each measure of competition?)

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Q1 It is used to study the level of market control by large market firms and to establish the level of competition that exists in the market It is a percentage of the market share percentage in the in... View the full answer