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Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 28%, 26%, 23%, 10%, 7%, 4%, and 2%.
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?
The four-firm concentration ratio would be %?. The Herfindahl index would be .
In the neoclassical growth theory
Explain is it possible for the new long-run equilibrium price to be above the original long-run equliibrium price.
Elucidate how much will the government spend in total. Elucidate how much does producer surplus increase.
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What must happen to induce foreign residents to buy the bonds? If foreign residents desire to purchase the bonds, what is the most important source of dollars to buy them?
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