Four firm Concentration Ratio and HHI Science Assignment Help
Assignment Task
Task
Q1 Suppose that eight coffee shops have market share in the local coffee market as 28, 10, 15, 12, 8, 6, 4 and 17 percent (as percentages of total quantity of coffee sold).
What is the four?firm concentration ratio and HHI? What is the type of concentration? Why? 2 marks
- Four Firm Ratio =
- HHI =
- Type of concentration:
Q2 If the top 2 sellers combined to form a single firm, what would happen to the four?firm concentration ratio and to the HHI? Is there any change in the type of concentration? Why? 2 marks
- Four Firm Ratio =
- HHI =
- Type of concentration:
Q3 Given that you are successful in getting franchise of Second Cup Coffee in a busy location in the Lake Shore area, Toronto.
Describe at least five non-price competition strategies to differentiate your business and make it profitable as compared to other franchise like Tim Hortons.
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