Please show your calculations for the following: Suppose tha…

Please show your calculations for the following: Suppose that the most popular car dealer in your area sells 20 percent of all cars.  a)If all other car dealers sell either the same number (20%) or fewer,  what is the largest value that the  Herfindahl index could possibly take for car dealers in your area?  Show your calculation b) In that same situation,  what would  the four-firm concentration ratio be?  Show your calculations c) What would your result tell you about the market structure of car dealers in your area?

Frito-Lay dominates the snack food business,  with half of a…

Frito-Lay dominates the snack food business,  with half of all salty snack items.  Competitors say that Frito-Lay has secured its dominant position with shelf-space rentals in retail stores,  paying as much as $40,000 annually to secure prime shelf space in grocery and convenience stores.  “Frito can afford it, ” says a regional rep for a competing company,  “we can’t”. A.   Explain what type of market structure firms in the salty snack foods market operate under.  Why do you say that? B.  What are the costs faced by firms in salty snacks?  Please label whether these costs are fixed or variable,  implicit or explicit. C.   Why is there so much advertising in the salty snacks industry? Does advertise promote efficiency or inefficiency?  Explain