the way they worded that question about X equal sized firms didn’t really make huge sense. i guess you took the 40 firm concentration ratio and took its reciprocal and multiplied by 40. but i’m not really sure that’s what the stat “means”… you could also have done the math on HH and come up with 32 firms at 3%. which wasn’t a choice. anyway, that porter section was really awful one thing i will say. CFA saved me a couple of times by not having my wrong answer as one of the choices.
answer is 1/HHI
you had to solver for hhi - 40 firm concentration does not help here as it s just mkt size of 40 largest firms… solve solve for number of firms that gives you .0032 given the 4 choices. i just trial and errored… answer was 313
i’m still not sure what has hhi to do with this i took 50/0.4
oh i was off in my calculation i guess… my 32 firms must be 320 firms.
looks like i added an extraneous step
HH index of 320 (is that equivalent??) = (100/x)^2… TIMES x… so 10000/X = 320 320 firms at 0.003% share = 0.0028 (say 0.0032… close enough) did i have my original decimal point off by one. i thought it was 0.032. i guess not.
313 looks correct
yeah, alright. i would appear i misread the number or am completely confused LOL
me too…I put 1/HHI = 313
I argued that one in reverse. Took the (1/answers) squared times the answer. 313.
Do you all agree that we miss information or misread questions after the first hour because of the intensive reading, anxiety and stres? Especially monthly, yearly, least likely, most likely, correctly and incorrectly etc.?
yep it was 312.5 and the closest answer was 313. That felt nice.
I think this question was about N Firm concentration ratio and not HHI
no… they just asked how many firms