Business, 15.04.2020 04:54 jordynj6363

1) The Herfindahl index Suppose that three firms make up the entire tire manufacturing industry. One has a 50% market share, and the other two have a 25% market share each.
The Herfindahl index of this industry is .
2) Tread Tough, one of the firms with a 25% market share in the tire manufacturing industry, leaves the market.
This would cause the Herfindahl index for the industry to .
3) The largest possible value of the Herfindahl index is 10,000 because:

a) An index of 10,000 corresponds to 100 firms with a 1% market share each.
b) An industry with an index higher than 10,000 is automatically regulated by the Justice Department.
c) An index of 10,000 corresponds to a monopoly firm with a 100% market share.

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1) The Herfindahl index Suppose that three firms make up the entire tire manufacturing industry. One...

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