Download the App!
Get 24/7 study help with the Numerade app for iOS and Android! Enter your email for an invite.
Get the answer to your homework problem.
Try Numerade free for 7 days
Like
Report
Use Table 11.5 to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a concentrated market or not?
There are certain ratios and indexes which are used by economists to measure thecompetitiveness of an industry like four-firm ratio, HHI, etc. Antitrust laws are the laws andregulations that are imposed by government or authorities to ensure the increasedcompetitiveness in the market.The four-firm concentration ratio helps know the market dominance of top firms in the industry byadding up the market share of top four market share holding firms in the industry.Calculate the four-firm concentration ratio as follows:$=19+17+14+11$$=61 \%$Thus, the four-firm concentration ratio is 61$\%$As, the four-firm concentration value shows that these four firm covers more than 60$\%$ market soit is a concentrated market.
No Related Courses
Chapter 11
Monopoly and Antitrust Policy
Markets and Welfare
The Economics of the Public Sector
Firm Behavior and the Organization of Industry
Topics for Further Study
05:29
Is it true that the four-f…
00:36
Does either the four-firm …
02:10
How do we measure a four-f…
02:58
Is it true that a merger b…
02:51
Suppose there are five fir…
01:28
Sales of the firms in the …
01:37
Table 12.5 provides the su…
03:14
In Exercises $29-34,$ draw…
04:33
State whether each of the …
03:26
Referring to Applied Examp…
03:25
The four-firm concentratio…
00:35
Use the figure in the next…
01:23
01:54
Starting with the data in …
00:45
Consider the graph below s…
01:06
Use the table that shows t…
01:11
Use $K_{\text { sp values …
02:06
01:19
Sixty-five randomly select…
02:12
Review Figure $3.4 .$ Supp…
Okay, let's calculate the four firm concentration ratio for the U. S. Auto market. Here we have the top for firms you know we have to do is add up the American shares. So the student nine per 7 16 was for his 20. This one is 21 21 234 56 61 Brooks. So the four firm concentration ratio for the U. S. Auto market is 61. It's a concentrated right there. Or not. Um, yes, this is higher than you would like, right? For firms Thing of own 61% of the market. So I would say this relatively high. It's not too high. Well, just definitely. It might raise some eyebrows if two of these firms were too propose a merger.
View More Answers From This Book
Find Another Textbook
Is it true that the four-firm concentration ratio puts more emphasis on one …
Does either the four-firm concentration ratio or the HHI directly measure th…
How do we measure a four-firm concentration ratio? What does a high measure …
Is it true that a merger between two firms that are already in the top four …
Suppose there are five firms in a market, with the following market shares:<…
Sales of the firms in the tattoo industry are: Calculate the four-firm conce…
Table 12.5 provides the supply and demand conditions for a manufacturing fir…
In Exercises $29-34,$ draw a scatter plot of the data given in the table.
State whether each of the following is mathematically possible or impossible…
Referring to Applied Example 12.4 on page 588 :a. Does the category, cit…
The four-firm concentration ratio for audio equipment makers is 30 and for e…
Use the figure in the next column to work.The figure illustrates the market …
Starting with the data in problem $7,$ suppose that Firm A manages to take 5…
Consider the graph below showing the U.S. market share for various advertisi…
Use the table that shows the number of movie tickets sold in the United Stat…
Use $K_{\text { sp values from Table } 17.3 \text { to calculate the followi…
Sixty-five randomly selected car salespersons were asked the number of cars …
Review Figure $3.4 .$ Suppose the price of gasoline is $\$ 1.60$ per gallon.…
01:04
Why would a firm choose to use one or more of the anticompetitive practices …
02:50
If Congress reduced the period of patent protection from 20 years to 10 year…
02:55
What can government do to encourage the development of new technology?
05:02
Name two public goods and explain why they are public goods.
00:46
Do entry and exit occur in the short run, the long run, both, or neither?
01:53
Say that the government is considering a ban on smoking in restaurants in To…
02:04
Explain in words why a profit-maximizing firm will not choose to produce at …
01:22
Is a monopolist allocatively efficient? Why or why not?
02:35
What is the problem of moral hazard?
02:08
Describe how a push for economic equality might reduce incentives to work an…
