Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its own market share is percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is percent. Then a sixth firm, located in Cleveland, Ohio, enters the same industry. The new firm captures percent market share, and the market share of one of the smallest three original incumbents declines to percent as well. After the Cleveland firm's entry into the industry, what are the values of the four-firm concentration ratio and of the Herfindahl-Hirschman index?

1. 86.7%

2. 2244.4

Explanation:

The computation is shown below:

1. The new 4 firm concentration ratio  after entry is

= Total mix share of 4 largest firms

= 30% + 30% + 13.33% + 13.33%

= 86.7%

2.  Now HHI index is

= sum of squared shares

= 30^2 + 30^2 + 13.33^2 + 13.33^2 + 6.67^2 + 6.67^2

= 2244.4

Hence, we applied the above values so that each part could be determined

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi