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
Radda [10]
3 years ago
6

Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. Instructions: Enter your answers as whol

e numbers.
a. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area?

b. In that same situation, what would the four-firm concentration ratio be?
Business
1 answer:
Vlada [557]3 years ago
7 0

Answer:

1.  Herfindahl index = 400

2. 40%

Explanation:

1. <em>Remember,</em> the Herfindahl index is an index used to determine the level of market concentration in an industry. Assuming the total car dealer firms are four in number, we can derive the largest value that the Herfindahl index could possibly take for car dealers in the area using the formula:

HHH=S1^{2} + S2^{2}  + S3^{2} + S4^{2} +... Sn^{2}

Thus, the HHH =  10^{2} + 10^{2}+ 10^{2} +10^{2} = 400

2. The four-firm concentration ratio is calculated by summing the individual market share percentage; 10% + 10% + 10% + 10% = 40%

You might be interested in
Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' _
hram777 [196]

Answer:

Needs, wants, and ability to purchas

Explanation:

There is no reason to focus on consumer needs thousands of years ago. But we can say that technological advances and communication are wreaking havoc in this regard. Trends and fashions mark each day more than we want to obtain, consume and buy. And that has multiplied by a thousand in the last hundred years

3 0
3 years ago
Business are hiring workers and GDP starts to increase as consumer spending increases
Grace [21]

Answer:

True

Explanation:

The reason is that the business would only recruit extra employees if the demand of the product is increasing which means that the consumer are spending more on purchasing goods and services which would increase the domestic production that is responsible in increase in GDP of the country. So it is true that increased customer spending increases the domestic production which increase the GDP of the country.

6 0
3 years ago
An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalay
V125BC [204]

Answer:

b. Overvalued

Explanation:

Overvalued stocks are securities that trade higher than their fair market value, i.e. the value that the company's fundamentals, such as earnings or revenues justify.

4 0
3 years ago
Tim writes a note to his boss to apologize for an embarrassing typo in a recent publication. at the end of the message, he promi
lina2011 [118]
<span>Tim’s desire to demonstrate remorse for his sanctions as well as demonstrate his understanding of the consequences of his poor behavior. This promise is an example of Tim attempting to secure future employees within with his current organization. Tim is ultimately owning my up to a mistake like a true man.</span>
6 0
3 years ago
Do all accounts serve the same function? Why or why not?
lara [203]

No<span>, </span>accounts serve<span> the </span>purpose<span> that their owners choose. They do not have the same function.

>>>Accounts are f</span><span>inancial records of an organization that register all financial transactions, and must be kept at its principal office or place of </span>business<span>.
In accounting, it means </span><span>the chronological </span>record<span> of </span>changes<span> in the </span>value<span> of an </span>entity's assets<span>, </span>liabilities<span>, and the </span>owners' equity<span>

In banking,it means c</span>ontinuing financial relationship<span> between a </span>bank<span> and a </span>customer<span>,whereby </span>deposits<span> and </span>debts<span> are </span>held<span> and processed within a </span>framework<span> of </span>established rules<span> and </span>procedures.<span>


<span /></span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. Ho
    7·1 answer
  • There are three components to dr. juran's process improvement strategy, known as the _____________ : planning, control, and impr
    7·1 answer
  • Researching investments online can be valuable because
    6·1 answer
  • Wilson is currently producing a component for one of its products. Wilson has received an offer to buy the component from an out
    11·1 answer
  • If the expected sales volume for the current period is 9,000 units, the estimated the beginning inventory is 200 units and the d
    8·1 answer
  • A bank reconciliation reconciles the bank statement with the company's Multiple choice question. net cash flow in the statement
    12·1 answer
  • In the week to come, a bank expects $55 million in incoming deposits, $75 million in acceptable loan requests, $35 million in mo
    7·1 answer
  • Which of the following is a function of the Federal Reserve System Board of Governors?
    7·1 answer
  • Sweet night :) sleep tight​
    12·1 answer
  • Can Transnet raise extra capital for expansion
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!