The table below shows the sales of 50 firms that make up the TATOO industry.
A) Calculate the four-firm concentration ratio.
B) Calculate the Herfindahl-Hirschman Index (HHI).
C) What is the structure of the TATOO industry?
D) Suppose a change in the TATOO industry makes it easier for anyone to enter the industry. How might this change influence the market?
| Firm | Sales ($) |
|---|---|
| Bright Spots | 450 |
| Freckles | 325 |
| Love Galore | 250 |
| Native Birds | 200 |
| Next 16 firms (each) | 50 |
| Next 30 firms (each) | 20 |