Answer:
25151/100000
Step-by-step explanation:
Answer:
Step-by-step explanation:
2x + 3 = 4x - 5
-2x + 3 = -5
-2x = -8
x = 4
Answer:
a)the largest Herfindahl index possible = 200
b)the four firm concentration ratio = 8%
Step-by-step explanation:
a) from the question, it follows that the largest share any dealer can have is 2% and the sum of all dealer shares must equal 100% of the market.
We therefore have a maximum number of firms to be 100%/2% = 50.
Since we now know that the maximum number of firms is 50,thus;
At a maximum concentration share of 2% for all firms, the largest Herfindahl index possible = number of firms x percentage squared for each firm = 50 x (2)² = 200
b) In the same logic above, the four firm concentration ratio = 4 x share of the market = 4 x 2% = 8%
