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?