# Q. 50 equal sized firms have concentration ratio 40

50 equal sized firms have concentration ratio 40 Is this a N firm concentration Ratio question…if so answer is 125. Or is it HHFI question in which case answer is 331. I picked 125. I think i am wrong ? any one ?

I believe you’re wrong. The answer should be 1/HHFI = 1/.032 = 313.

I think it was N firm concentration. And i picked 125 also. Should be correct. HHFI was given in the second line and it was different. The question was regarding H firm. Anish

They gave both the N firm and HHFI. The question asked what the equivalent number of firms in the industry was. In this case, you would use the HHFI. The N firm concentration is only the N LARGEST firms in the industry, so it would not indicate the relative number of equal sized firms…

Concentration ratio is actually 50/.4 = 250 but that wasn’t the right answer either. It wasn’t asking for the number of firms in the industry, but the number of equal sized firms…

Andy, i think you defined them opposite or I just didn’t have my coffee yet!! I think it’s me. I m leaving.

AndyJohnPo Wrote: ------------------------------------------------------- > They gave both the N firm and HHFI. The question > asked what the equivalent number of firms in the > industry was. In this case, you would use the > HHFI. The N firm concentration is only the N > LARGEST firms in the industry, so it would not > indicate the relative number of equal sized > firms… agreed, pretty sure it was inverse of HHI RE: “It wasn’t asking for the number of firms in the industry, but the number of equal sized firms…” It stated the [entire] industry was made up of equally sized firms- the N-firm still won’t neccessarily include all of the,. If an industry had 100 1% size firms, a 40- firm will be 40%… no way to derive # of firms from it. IMHO

Oh, I agree I know my answer wasn’t correct, but at the time I thought it was…

I don’t remember the actual question, but using the HHI I got the highest answer (330 or something like that). I’m 99% sure of it.

Each time i figure out that I got one more question wrong…I have this feeling of slipping closer and closer to water. Hope i have enough buffer left to survive.

Bankin’ Wrote: ------------------------------------------------------- > I don’t remember the actual question, but using > the HHI I got the highest answer (330 or something > like that). I’m 99% sure of it. I know exactly what you mean!

100% sure it is 313

i think is 313 (or something like that).

GetSetGo Wrote: ------------------------------------------------------- > Each time i figure out that I got one more > question wrong…I have this feeling of slipping > closer and closer to water. > > Hope i have enough buffer left to survive. you and me both bud. You and me both…

can anyone recall the options available for this q ?

it was 125, 128, 250, 313 definitely 313 as explained

The answer was 125. It asked for the number of firms in the industry. Not the number of equal sized firms. And if it did ask for the number of equal sized firms it did not specify that the HHI number was for the 40 equivalent sized firms in the industry. If it did I missed it. Also, if it did you would have to assume that the forty firms were the only firms of that particular equivalent size which would create a lot of ambiguity because there could be firms of a similar size that were excluded from the HHI number (for instance, there could be forty firms with all 3% market share and another 10 with 2% market share). I could be wrong but when I read the question I remember it asking for the number of firms in the industry.

suckssss… don’t tell me that ans to this is not 313. I am a sure fail

i remember the words equal sized very specifically and the .032 number or whatever was given…the answer was 313.

I disagree. But whatever we’ll all see when the grades come out. I remember the words equal sized firms too… Problem is I don’t remember the question specifically asking for the number of equal sized firms. I remember it asking for the number of firms in the industry.