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Suppose two industries each consist of five firms with the following market shares.
Industry A Industry BFirm #1 50% Firm #1 25%Firm #2 20% Firm #2 25%Firm #3 10% Firm #3 20%Firm #4 10% Firm #4 20%Firm #5 10% Firm #5 10%
1. Derive the four-firm concentration ratios for both industries.
2. Compute HHI for both industries.
3. Which industry is more concentrated according to 4-firm concentration ratio?
4. Which industry is more concentrated according to HHI?
5. Which of these measures (HHI and four-firm concentration ratio) can be argued to be a better measure of industrial concentration. Discuss.
Assume government imposed a minimum wage above what otherwise would be the equilibrium wage rate for this segment.
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Taiwan Electronics produces 3 models of the CB radios, A, B, and C-Employ the transportation model to find out the best production schedule.
Compute the point price elasticity of demand for bearing grease. Compute the optional price for bearing grease if marginal cost is $4.50 per unit.
Brian and Allen are thirty years old with identical academic records and job history. Both currently have jobs paying $40,000 each year.
Elucidate implications would these policies have on the economy and specifically your personal and professional life.
What price should DD set to maximize profits? What would output be if DD acted like a perfect competitor and set P = MC?
The inverse market demand curve is P=140-Q, and inverse supply curve is P=20+Q. Suppose that the market is competitive,
List four reasons why analyzing the economy is not as precise as the multiplier model makes it appear.
Illustrate what are the dominant industries and or corporations, and who controls them. What is the trade relationship between your country and the United States.
After the firm's patent expires, predict the new market output and price. Assume that competing suppliers have the same economic costs as the original producer. Calculate the resulting change in consumer surplus.
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