Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

12. Monopoly

Mergers and the Herfindahl-Hirschman Index (HHI)

Microeconomics

12. Monopoly

Mergers and the Herfindahl-Hirschman Index (HHI)

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Multiple Choice

The monkey smoking a cigar industry is:

Not concentrated

Moderately concentrated

Highly concentrated

Not enough information

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Verified step by step guidance

Calculate the total market quantity supplied by summing up the quantities supplied by all suppliers. This includes Top Notch Monkeys, Mr. Monkey's Monkeys, Discount Monkeys, and the five other suppliers.

Determine the market share of each supplier by dividing the quantity supplied by each supplier by the total market quantity supplied. Multiply the result by 100 to express it as a percentage.

Use the Herfindahl-Hirschman Index (HHI) to assess market concentration. The HHI is calculated by summing the squares of the market shares of all suppliers.

Interpret the HHI value: An HHI below 1,500 indicates a not concentrated market, between 1,500 and 2,500 indicates a moderately concentrated market, and above 2,500 indicates a highly concentrated market.

Based on the calculated HHI, determine whether the industry is not concentrated, moderately concentrated, or highly concentrated.