Consider the Following market for Widgets for question #1 and #2: Company Market
ID: 1124397 • Letter: C
Question
Consider the Following market for Widgets for question #1 and #2:
Company Market Share
Widget Kings 35%
Widget Brothers 20%
ABC Widgets 20%
Discount Widgets 15%
Widget Warehouse 5%
Widgets Widgets Widgets 5%
1. What is the Four Firm Concentration Ratio of this industry?
2. What is the HHI of this industry?
Explanation / Answer
1> Four firm concentration ratio would be (35+20+20+15)%=90%
2> HHI of this industry will be 35^2+20^2+20^2+15^2+5^2+5^2=2300