Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of allhamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent.Instructions: Enter your answers as a whole number.a. What is the four-firm concentration ratio of the hamburger industry in this town?BookpercentPrintb. What is the Herfindahl index for the hamburger industry in this town?erencesc. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahlindex?Four-firm concentration ratio =|percentHerfindahl index =

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent.

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 12P

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Question

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all
hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent.
Instructions: Enter your answers as a whole number.
a. What is the four-firm concentration ratio of the hamburger industry in this town?
Book
percent
Print
b. What is the Herfindahl index for the hamburger industry in this town?
erences
c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl
index?
Four-firm concentration ratio =
|percent
Herfindahl index =

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