Calculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in this market. Sales (millions of dollars) 7.4 7.1 Expressive 6.8 LA & Company 6.2 Forever 22 5.3 Limitless 4.2 What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations. Retailer Dap American Jaybird four-firm concentration ratio: 28
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- There is much evidence that large firms with considerable market power (firms such asmonopolies) may not maximize profits but may pursue quite different objectives such asgrowth or sales revenue maximization. What are the arguments put forward to defendmonopoly? Name any 5 Generally, the aim of a business is to maximize profit. Which point should a firm operateat in order to achieve maximum profit? By making use of a graph indicate clearly the pointat which a firm makes maximum profit and a point where a firm increase their output inorder to enhance profit as well as well as the points where they should reduce theirproduction if they want to enhance profitSuppose that a particular industry has a four-firm concentration ratio of 45 and a Herfindahi index of LS40. Most ikety, this industry would ochieve Mutipie Chaice both productive efficiency and allocative etficency wllocative efficency but not productive effcency nether productive efficiency nor allocative efficiency productive efficiency but not allocative efficiencyCalculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in this market. Sales (millions of dollars) 7.4 7.1 Expressive 6.8 LA & Company 6.2 5.3 Forever 22 Limitless 4.2 What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations. Retailer Dap American Jaybird
- The table below shows revenue data for different firms producing cell phones. Use the given information to determine the 4 Firm Concentration ratio. Firm Revenue in $ Market Share in % Aardvark Inc 490 19 Buzzy Co 11 285 Cran Inc 310 12 Delta Co 460 18 Echo Co 505 20 Farriss Co 515 20 What is the Four Firm Concentration Ratio? Is this market concentrated? OYes ONo EPICThink about firms such as the Coca Cola Company and PepsiCo who competeagainst each other in the monopolistically competitive market for soft drinks. Eachfirm produces a unique product, but each of these unique products is to some extenta substitute for the soft drinks produced by rival companies.Now imagine a situation where the firms within such a market are facing suchextreme competition that they are unable to make an operating profit. Characterisethis situation diagrammatically and explain what will happen to the market, payingparticular attention to the exit or entry of firms out of (or into) the market.3. Suppose Microsoft is selling the two products to the individuals below with their willingness to pay for each item as in the table. Suppose the costs of producing each item is $10 for both products. Find the maximum profit of Microsoft if it can sell with either unit pricing, pure or mixed bundle prices for these items. TIT Word Processor Spreadsheet Alice 20 10 Ben 40 30 Chris 80 70 Daniel 60 50
- Suppose you are given the following firms and their annual sales data from last year in the cellular phone industry: Firm Sales (millions of dollars) Orange Is Better Than Apple S2, 000 Macro Hard S 1,300 Professors Can't See You Use Our Phones In Class $500 Phones "r" Us $800 Handhelds $1,000 Rings Up $300 We Sell You Cells $1,500 All other cellular phone companies combined sales $10, 700 Calculate the four-firm concentration ratio for this industry (show your work). Assuming that 40 percent is the dividing line between concentrated and competitive for this industry, how would you describe it?Suppose an industry that has 10 firms. Below are the market shares for 2008 and 2013 of the 10 firms. Market Share Firms 2008 2013 A B C D E F G H I G 26% 21% 16% 10% 9% 7% 4% 3% 2% 2% 22% 23% 19% 9% 8% 7% 6% 4% 1% 1% Calculate the concentration ratio CR4 and the concentration ratio CR8 for 2008 and 2013 Calculate the Herfindahl-Hirschmann Index (HHI) for 2008 and 2013 Using the CR4, CR8, and HHI, analyze the evolution of the seller concentration in the industry. Has the industry become more or less concentrated? Using the CR4, CR8, and HHI, analyze the evolution of the potential market power of firms in the industry.The table shows the total revenue of the 50 firms in the tattoo industry. Total revenue (dollars) 1,450 Calculate the four-firm concentration ratio and the HHI. Firm Bright Spots Freckles >>> Answer to 2 decimal places. 1,300 What is the market structure of the tattoo industry? Love Galore 800 Native Birds 650 The four-firm concentration ratio equals Next 10 firms (each) 200 Next 16 firms (each) Next 20 firms (each) 150 The HHI equals 125 The four-firm concentration ratio indicates that the market is and the Herfindahl-Hirschman Index Industry 11,100 indicates that the market is (Assume there are no reasons that would make the concentration measures unreliable guides.) O A. monopolistic competition; a monopoly O B. probably not monopolistic competition; monopolistic competition OC. monopolistic competition; monopolistic competition O D. a monopoly; monopolistic competition O E. a monopoly; a monopoly
- Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?The following graph illustrates the market for small moving trucks in Eugene, OR, during Oregon's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 30 20 2 10 D D Demand 1 0 1 2 3 2 3 4 5 QUANTITY (Hundreds of small trucks) 7 Suppose that Zoomba is one of over a dozen competitive firms in the Eugene area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is S Supply Fill in the price and the total, marginal, and average revenue Zoomba ears when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue Average Revenue (Trucks) (Dollars per truck) (Dollars) (Dollars) (Dollars per truck) Average revenue curve O Marginal revenue curve Marginal cost curve O Supply curve 10 0 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply.Next Question Consider the network scheduling profit matrix Can the Pareto Critenon hep me networks sette on a single equibrum? Explain The Pareto Criterion Ne O A cannot help the networks sette on a singlo equibrum because the Wednesday Thursday networks cannot communicate OB. can help the networks settle on a single equibrum because the networks have dominant strateges Wednesday OC. cannot help the networks settie on a singie equilbnum because no Nash equilibria is better for both networks 40 Nebok 2 O D. can help the networks settle on a single equibrium because one Nash equilibrium has the highest joint payoffs O E. cannot help the networks settle on a single equilbrum because the networks must schedule simultaneously Thursdey