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  • Card 11 / 23:
    Is it true that both the four-firm concentration ratio and the Herfindahl-Hirshman Index can be affected by a merger between two firms that are not already in the top four by size? Explain briefly.

    Yes, it is true. The HHI example is easy enough: since the market shares of all firms are included in the HHI calculation, a merger between two of the firms will change the HHI. For the four-firm concentration ratio, it is quite possible that a merger between, say, the fifth and sixth largest firms in the market could create a new firm that is then ranked in the top four in the market. In this case, a merger of two firms, neither in the top four, would still change the four-firm concentration ratio.

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Questions & Answers

what is division of labour
Dennis Reply
division of labour can be defined as the separation of task to individuals in any economic system to specialize on it.
Ahmad
what is demand curve
Victoria Reply
demand curve is a downward sloping economic graph that shows the relationship between the price of product and the quantity of the product demanded.
Ahmad
What is demand
Frank Reply
It refers to the quantity of a commodity purchased in the market at a price and at a point of time.
Basanta
refers to amount of commodities a consumer is willing and able to buy at particular price within a period of time
Clifford
It is the ability and willingness a customer buys a product or service at a particular price, place and time while other things remaining constant or the same
kum
In which case is opportunity cost is zero
Francis Reply
where no alternative is available
Bhartendu
who is the father of economic
Omar Reply
Adam Smith
Suraj
ok
Tony
Adam Smith
Francis
Adam smith
Opana
Adam Smith
Basanta
What is monopoly
Mauthoor Reply
it an economic situation where one individual controls the essential commodities or value product for maximum profit
James
monopoly is a market situation in which there is only one producer of a good or service which has no close substitutes
eliano
is where only one person is solely the price taker
Francis
what is Monopoly
Dauda Reply
The word Monopoly is a Latin word. it is the combination of two words-Mono means single and Poly means seller. thus Monopoly means single seller. but this is not the full meaning of Monopoly. Monopoly must produce a product which does not have close substitute in the market.
Basanta
Monopoly is define as a firm in an industry with very high barriers to entry.
Favour
If close substitute is available, Monopoly will be a king without a crown.
Basanta
what does it array
Cbdishakur Reply
what are the differences between monopoly and.oligopoly
Onome Reply
what are the difference between monopoly and oligopoly
Cbdishakur
The deference between Monopoly and Oligopoly: Monopoly means:A single-firm-Industry producing and selling a product having no close business and Oligopoly means:A market structure where a few sellers compete with each other and each controls a significant portion of market .
Basanta
so that the price-output policy one affects the other.
Basanta
what are difference between physical policy and monotory policy
hon
what is economic
Emakpor Reply
what is economic
Cbdishakur
the word economic was derived from the Greek word oikos (a house)and mein(to manage) which in effect meant managing a household with the limited funds available 🙂.
Basanta
good excample about scarsity
hon
An Enquiry into the nature and causes of wealth Nations, this book clearly defined what economic is🙂🙂🙏🙏 thank you...
Basanta
good example about scarcity: money,time, energy, human or natural resources. Scarcity of resources implies that there supply is very much limited in relation to demand.
Basanta
equilibrium is a situation in which economic forces such as demand and supply are balanced and in the absence of external influences,the value of economic variables will not change
Onome Reply
hmnn
Emakpor
marginal cost and marginal revenue is equilibrium .
Kho
yessss
Basanta
what is equilibrium
Rodrice Reply
policy prescriptions for unemployment
Jeslyne Reply
Am working on it
Blacks
Study
Janelle
study
simeon
what are the factors effecting demand sedule
Kalimu Reply
we should talk about more important topics, you can search it on Google n u will find your answer we should try to focus on how we can improve our society using economics
shubham
so good night
hon
Why do people buy more grapes in December than in July?
lungi
ways of improving human capital
kelly Reply
what is human capital
kelly
Capital can be defined as man made assets use in production .
Abdulai
What is the differences between central Bank And Commercial Bank ?. 2 for each
Abdulai
Two types of bank clearing house.
Abdulai
what are the most durable assets of a bank
Ngongang

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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