2. There are 150 firms in the sector. The top four firms have market shares of 30%, 25%, 20% and 15%. The other firms ha

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2 There Are 150 Firms In The Sector The Top Four Firms Have Market Shares Of 30 25 20 And 15 The Other Firms Ha 1 (26.74 KiB) Viewed 20 times

2. There are 150 firms in the sector. The top four firms have market shares of 30%, 25%, 20% and 15%. The other firms have market shares of 0.5% or less. They have the capacity to build small structures and effect minor repairs. The top four firms can undertake medium to large projects either individually or as joint venture undertakings. The largest firm is a branch of a foreign firm. (a) Given the information on the sector, into what market structure(s) would you classify the firms? Explain your choice of market structure(s). 5 marks (b) Using the four-firm concentration ratio and the Hirschman-Herfindahl index, comment on the degree of concentration in the sector. 6 marks