-The Herfindahl-Hirschman Index Is Used as a Guideline to Determine

question 150

Essay

-The Herfindahl-Hirschman Index is used as a guideline to determine if a market is competitive or concentrated. Calculate the index value for each market described below.
a) 100 firms, each of which produces 1 per cent of market output
b) 50 firms, each of which produces 2 per cent of market output
c) 25 firms, each of which produces 4 per cent of market output
d) 20 firms, each of which produces 5 per cent of market output
e) 10 firms, each of which produces 10 per cent of market output
f) 5 firms, each of which produces 20 per cent of market output
g) 2 firms, each of which produces 50 per cent of market output

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Definitions:

Residuals

The deviation of true observations from the predictions made by a simulation or computational model.

Sample Size

The number of observations or entities that are selected from a larger population for the purpose of statistical analysis.

Regression Analysis

A statistical technique for estimating the relationships among variables, often used to predict the value of a dependent variable based on the values of one or more independent variables.

Trend Line

A line drawn on a graph that shows the general direction in which data is moving over time.