Consider Two Industries Described by the Data Below

question 7

Essay

Consider two industries described by the data below.Should we use a structural analysis of markets approach or a contestable market approach to analyze the competitiveness of each industry? Analyze the industries using the correct approach and explain what information we need to use the other approach. $$\begin{array} { c c c } \text { Industry } & \begin{array} { c } \text {value } \\\text { Herfindahl index }\end{array}& \begin{array} { c } \text { Four-firm } \\\text { concentration ratio }\end{array} \\\text { A } & 7,500 & 80 \\\text { B } & 1,000 & 20\end{array}$$

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Definitions:

Trait Methods

Techniques in psychology and human resource management that assess individual characteristics, such as personality traits, to predict job performance.

Behavioural Methods

Techniques and approaches used in managing and changing individuals' behaviors in various settings, including the workplace.

Results Methods

Techniques or processes used to evaluate the outcomes of actions, projects, or strategies, focusing on the achievement of specific objectives.

Critical Incidents

Significant events or situations that require immediate attention and action due to their impact on operations or individuals.