Suppose that the top six firms in an industry have total annual sales of $210 billion, $150 billion, $90 billion, $80 billion, $60 billion, and $10 billion, respectively.
Instructions: Round your final answers to the nearest whole number.
a. What is the four-firm concentration ratio for this industry?---- 88percent
b. What is the Herfindahl index for this industry?
c. Suppose another industry has a Herfindahl index of 3,000. Are firms in the second industry likely to have more or less market power?--- more