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Suppose the two industries exhibit the following market shares for firms:?
Industry A Industry B
Firm 1 26% 25%
Firm 2 23% 23%
Firm 3 22% 22%
Firm 4 10% 17%
Firm 5 7% 13%
Firm 6 5%
Firm 7 3%
Firm 8 2%
Firm 9 1%
Firm 10 1%
a. Calculate the three firm concentration ratio and interpret
b. Calculate the Her find all Index and interpret
c. Which industry is the most competitive? Explain.
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