Imagine that there is an industry made up of 300 firms. You have data on the 9 largest firms below. You don’t have the revenues for 291 of the firms in the industry but one piece of critical information that you do know is that Company B has 12.5% market share.
Company Name Annual Revenues ($)
A 100
B 80
C 64
D 63
E 38
F 30
G 22
H 19
I 19
Answer the following questions (Round to 2 decimals if you need to round):
a. What is the CR4?
b. What is the CR8?
c. What is the HHI?
d. What is the total industry revenue?
e. What type of industry would you categorize this as?
f. Assuming the 10th company would not have to be included in the HHI because it didn’t meet the threshold for inclusion in an HHI calculation, what is the maximum revenue that this company could have?
g. Assume that the 291 other firms in the industry split the industry revenue not covered by the 9 firms above exactly equally. How much revenue would each have?
