Industry Concentration

Chris Lavery Research Project: Industry Concentration Industry assiduousness has dickens forms of measurement. The first is based upon a 100% concentration of all in all the firms in a certain industry. This is known as the concentration ratio and represents the value of the top firms of an industry stated as a percent of the total industry scales. The other typecast of concentration measurement is known as the Herfindahl great power and is cipher by squaring the individual producers percentage of the market and adding them together. For instance, if there were 5 firms in an industry and they each had 20% of the total output, the Herfindahl index would be; (20 squared) + (20 squared) + (20 squared) + (20 squared) + (20 squared)= 2000.

An example of these concentration ratios, taken from the 1997 US presidency economic census, are as follows: 4-Firm Concentration Ratio Herfindahl Index heart and soul products: 35 393 Fruit and vegetable canning: 24 259 Breakfast food grain: 82 2,445 Womens and and misses dresses: 13 76 Book printing: 32 364 stationery: 56 1,128 Soap and detergent: 66 1,619 Mens footwear: 50 857 Womens footwear: 50 795 Bolts, nuts, rivets, washers: 9 40 Electronic information processing system: 45 728 Radio, TV, wireless broadcasting: 49... If you want to get a full essay, order it on our website: Orderessay

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