1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kvasek [131]
3 years ago
7

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of al

l hamburgers sold): 23%, 22%, 18%, 12%, 11%, 8%, and 6%. instructions: enter your answers as whole numbers.
a. what is the four-firm concentration ratio of the hamburger industry in this town?
b. what is the herfindahl index for the hamburger industry in this town?
c. if the top three sellers combined to form a single firm, what would happen to the four-firm concentration ratio and to the herfindahl index?
Business
1 answer:
Alexxandr [17]3 years ago
8 0

Answer:

a. 75%

b. 1,702

c. 94%; 4,334

Explanation:

a. A town has seven burger shops. The market share of these burger shops are 23%, 22%, 18%, 12%, 11%, 8%, and 6%.  

The four-firm concentration of the hamburger industry can be found by calculating the market share of the top four firms.  

Four firm concentration ratio

= 23% + 22% + 18% + 12%

= 75%  

b. The Herfindahl index can be found by squaring the market share of each firm and then summing them up.  

Herfindahl index

= 529 + 484 + 324 + 144 + 121 + 64 + 36  

= 1,702

c. If the top three sellers are combined to form a single firm, there market share will be

= 23% + 22% + 18%

= 63%

The new four firm concentration will be

= 63% + 12% + 11% + 8%

= 94%

The herfindahl index will be

= 3,969 + 144 + 121 + 64 + 36  

= 4,334

You might be interested in
Customers are more likely to tell their friends about negative experiences with companies than positive ones because:
polet [3.4K]

There is more drama involved in unmet expectations.

The reason why customers are more likely to tell their friends about negative experiences with companies than positive ones is that humans often remember the hateful things said than the nice things

Also, when customers are satisfied with one's service, they rarely tell others. whereas an unsatisfied customer would tell others about his or her bad experience due to unmet expectations.

Logically, customers would have bigger impressions in their mind when they have bad experiences reason companies work on strengthening and improving their customer experience team.

Learn more at : brainly.com/question/11437477

8 0
3 years ago
Steve and craig have been shipwrecked on a deserted island in the south pacific. their economic activity consists of either gath
ANTONII [103]
The answer for this question is Steve's opportunity cost of a basket of pineapples is two fish while his opportunity cost of a fish is two basket of pineapples while Craig’s opportunity cost of a basket of pineapples is one fish; his opportunity cost of a fish is a basket of pineapples.
5 0
3 years ago
Anyone wanna play warzone :)
Alexxandr [17]

Answer:

i will destroy you

Explanation:

i am the goat at that game and 2K 20

7 0
3 years ago
Read 2 more answers
You are coaching an employee and determining on which challenge they can work. Which aspect of a
snow_lady [41]

You are coaching an employee and determining on which challenge they can work. We should avoid taking them past their comfort zone.

Coaching is a form of improvement in which an experienced individual, known as a teacher, supports a learner or purchaser in attaining a specific private or professional intention with the aid of imparting education and steerage. The learner is sometimes known as a coach.

Coaching refers to a way of education, counseling, or teaching a man or woman or a group how to increase talents to decorate their productivity or triumph over performance trouble. The manager is referred to as an instructor at the same time as the learner is called the coach.

The main cause of coaching is to maximize performance by using assisting a consumer to reach their peak potential. The main motive of coaching includes growing management, growing, building a self-perception device, growing motivation, and enhancing self-consciousness.

Learn more about coaching here brainly.com/question/26164090

#SPJ9

4 0
2 years ago
Due to economies of scale, average costs decline as:
Mkey [24]

Answer:

As production increases

Explanation:

  • Economies of scales is characteristic of certain business in which the average cost (the cost of every produced unit of an specific good or service, which equals total cost divided by all units produced) declines as the amount of the product increases.
  • This happens for example, in business that have a high cost of initial investment and low operating cost. Because of the initial investment, the average cost of the first units (which is the result of dividing total cost into all the units that have been produced until that moment), is relatively high because there is a high investment divided into relatively few units of production. This cost decreases while product increases because the cost of investment is distributed into more units, and the operating cost do not increase cost substantially.
7 0
3 years ago
Other questions:
  • Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives.
    8·1 answer
  • The act of buying and selling collectively form a contract. True or False
    11·1 answer
  • When goods are received, the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP cler
    8·1 answer
  • A person borrows ​$150 that he must repay in a lump sum no more than 8 years from now. The interest rate is 9.9​% annually compo
    13·1 answer
  • If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, and the expected return on dollar depreciation a
    10·2 answers
  • Presented below is net asset information related to the Skysong Division, Inc.
    9·1 answer
  • Suppose that the production function faced by a 30-weight ball bearing producer is given by Q- 4KL, where MP = 2K2 and MP = 2K L
    8·1 answer
  • Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000. Based o
    9·1 answer
  • Monthly sales are $530,000. Warranty costs are estimated at 3% of monthly sales, warranties are honored with replacement product
    10·1 answer
  • dale is a stay-at-home-parent whose typical day consists of getting the kids ready for school, doing the laundry, cooking three
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!