Outer Baldonia is a largely rural country with many small towns. Each town typically contains a retail store selling livestock feed. In virtually all towns, there is only one such store. The farmers who purchase feedfrom these stores typically live outside of town. Often, they will purchase from a store in the town closest to them, but if farmers learn through word of mouth that a feed retailer in a more distant town is selling feed at a lower price, they will sometimes go to that store to obtain feed. The countrywide market shares of the largest feed stores in Outer Baldonia are shown in the following table:
a) What is the 4CR concentration ratio for the livestock feed store market in Outer Baldonia?
b) What is the HHI for this industry?
c) Of the market structures described in Table 13.1, which one best describes the livestock feed market in Outer Baldonia?
