1. (5 points) A rm in the telecom industry has a marginal cost of $12 and charges a price of $68. What is the Lerner index? 2. An industry consists of3 rms with sales of $225,000; $45,000; and $315,000. 2.1. (5 points} Calculate the Herndahl-Hirschman index (HHI). 2.2. (5 points} Calculate the four-rm concentration ratio (C 4). 2.3. (5 points} Based on the Department of Justice merger rules discussed in class, does the Department of Justice considers this industry unconcentrated, moderately concentrated, or highly concentrated? 2.4. (5 points) Based on the Department of Justice merger rules discussed in class, do you think the Department of Justice would approve a horizontal merger between the two smallest rms in the market