The pizza market is divided as follows:
Pizza hut 20.7%
Little Caesar's 6.7
Pizza Inn 2.2
Round Table 2.0
All others 51.4
a. How would you describe its market structure?
b. What is the approximate Herfindahl index?
c. What is the four-firm concentration ratio?
a. The market structure is more like monopolistic competition. As is evident from the market shares, one firm does not have a monopoly and this is also not ...
The solution goes into a great amount of detail about the question being asked. The concepts are very well explained and easy to understand. The solution can be followed very easily by anyone who has some understanding of the concepts beforehand. Overall, an excellent response to the question.