An industry consists of five firms with annual sales of $1.2 million, $250,000, $100,000, $75,000 and $50,000.
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An industry consists of five firms with annual sales of $1.2 million,
$250,000, $100,000, $75,000 and $50,000.
a. Calculate the Herfindahl-Hirschman Index for this industry.
b. Calculate the 4-firm concentration ratio for this industry.
c. In your opinion, would the U.S. Justice Department approve a merger between the two largest firms in this industry? Explain.
d. Would the U.S. Justice Department approve a merger between the third and the fourth largest firms? Explain.
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Related Book For
Managerial Economics: Tools For Analyzing Business Strategy
ISBN: 307174
1st Edition
Authors: Thomas J Webster
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