Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo
Principles of Microeconomics 3e

Problems

Principles of Microeconomics 3eProblems
35.

Use Table 11.5 to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a concentrated market or not?

GM 19%
Ford 17%
Toyota 14%
Chrysler 11%
Table 11.5 Global Auto Manufacturers with Top Four U.S. Market Share, June 2013 (Source: http://www.zacks.com/commentary/27690/auto-industry-stock-outlook-june-2013)
36.

Use Table 11.5 and Table 11.6 to calculate the Herfindahl-Hirschman Index for the U.S. auto market. Would the FTC approve a merger between GM and Ford?

Honda 10%
Nissan 7%
Hyundai 5%
Kia 4%
Subaru 3%
Volkswagen 3%
Table 11.6 Global Auto Manufacturers with additional U.S. Market Share, June 2013 (Source: http://www.zacks.com/commentary/27690/auto-industry-stock-outlook-june-2013)

Use Table 11.4 to answer the following questions.

37.

If the transit system were allowed to operate as an unregulated monopoly, what output would it supply and what price would it charge?

38.

If the transit system were regulated to operate with no subsidy (i.e., at zero economic profit), what approximate output would it supply and what approximate price would it charge?

39.

If the transit system were regulated to provide the most allocatively efficient quantity of output, what output would it supply and what price would it charge? What subsidy would be necessary to ensure this efficient provision of transit services?

PreviousNext
Order a print copy
Citation/Attribution

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-microeconomics-3e/pages/1-introduction
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-microeconomics-3e/pages/1-introduction
Citation information

© Jul 18, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.