An industry consists of three firms with sales of $ 300,000, $ 700,000, and $ 250,000. a.
Question:
An industry consists of three firms with sales of $ 300,000, $ 700,000, and $ 250,000.
a. Calculate the Herfindahl- Hirschman index (HHI).
b. Calculate the four- firm concentration ratio (C4).
c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you think the Department of Justice would attempt to block a horizontal merger between two firms with sales of $ 300,000 and $ 250,000? Explain.
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a The HHI is b The fourfirm concentration ratio is 100 percent c If the firms with s...View the full answer
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Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0073523224
8th edition
Authors: Michael Baye, Jeff Prince
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