Microeconomics Help! 10 points for best answer

Posted on 2014-03-28 11:29:00 in Economics by FRENCHMOCHAARTIST

Can someone help me with solving this microeconomics problem. It deals with the Herfindahl index.



Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area?



In that same situation, what would the four-firm concentration ratio be?



If someone could explain their answer to this question, that would be great.



Thank You :)

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