Question

  What is the approximate Herfindahl index?

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question Suppose the pizza market is divided as follows: Firm Pizza Hut Domino's Little Caesars Pizza Inn/Pantera's Round Table All others Market Share 20.7% 17.0 6.7 points 22 20 51.4 a. How would you describe its market structure? Oligopoly Monopoly Perfect competition b. What is the approximate Herfindahl index? Instructions: Round your answer to the nearest whole number. 829 c. What is the four-firm concentration ratio? Instructions: Round your answer to one decimal place. 46.6 % Graw < Prev 4 of 5 !!! Next >

Firm	Market Share
Pizza Hut	20.7%
Domino's	17.0
Little Caesars	6.7
Pizza Inn/Pantera's	2.2
Round Table	2.0
All others	51.4

Answer 1

Herfindahl index= 20.7^2 +17^2+6.7^2+2.2^2+2^2=771

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