-Suppose There Are Ten Firms That Occupy the Odell,Oregon Cherry

question 185

Essay

-Suppose there are ten firms that occupy the Odell,Oregon cherry pie market.The market share of each firm is listed in the above table.
a.What is the Herfindahl-Hirschman Index for this market?
b.If Firm H and Firm A merge,what is the new Herfindahl-Hirschman Index for this market?
c.A severe winter causes every firm except A,B,and E to close.With only these three firms operating,Firm A's market share is 71 percent,Firm B's market share is 23 percent,and Firm C's market share is 6 percent.What is the Herfindahl-Hirschman Index for this market now?

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Definitions:

Fontanels

"Soft spots," or spaces, that separate the bones of the skull prenatally and in early infancy.

Skulls

The bony structures forming the head in vertebrates, housing the brain and providing support for the face and jaws.

Neuron

A nerve cell.

Axon

The main protruding branch of a neuron; it carries messages to other cells in the form of electrical impulses.