Answer to Question #92618 in Microeconomics for Anshika Kaushal

Question #92618
At the mall, there are 20 identically sized shoe stores. What is the four-firm concentration ratio?
At the mall, there are 28 identically sized shoe stores. What is the Herfindhal index?
1
Expert's answer
2019-08-14T12:20:21-0400

a)since the firms are identical,sales are identical so the four firm concentration ratio is

"\\frac{4}{20}\\times100=20%"

b) each firm has a market share of

"\\frac{100}{28}=3.571"

"3.571\\times3.571=12.75""28\\times12.75=357"

The Harfindhal concentration is 357


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Comments

Assignment Expert
14.08.19, 16:24

Dear visitor, please use panel for submitting new questions

adarsh
14.08.19, 00:28

At the mall, there are 23 identically sized shoe stores. What is the Herfindhal index?

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