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An industry consists of three firms with sales of $ 2 2 5 , 0 0 0 , $ 4 8 5 , 0 0

An industry consists of three firms with sales of $ 225,000, $ 485,000, and $ 320,000. a. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C_4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $ 225,000 and $ 320,000? No Yes

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