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Business Economics- profit & structure Report Abuse

Category : Others | This query is : open


author : Jaya

Posted On
20 August 2016

Can some one help with the below.


3. Forey, Inc., Competes against many other firms in a highly competitive industry. Over the last decade, several firms have entered this industry and, as consequences, Forey is earning a return on investment that roughly equals the interest rates. Furthermore, the four-firm concentration ratio and Herfindahl Hirschman index are both quite small. Based on this information, which market structure best characterizes the industry in which Forey competes? Explain the features this market structure and what happens to the company’s profit in the short-run and long-run.

 


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