Question
An industry consists of three firms with sales of $225,000, $45,000, and $315,000. (a) Calculate the Herfindahl-Hirschman index (HHI). Show your calculations. HHI = (b)
An industry consists of three firms with sales of $225,000, $45,000, and $315,000.
(a) Calculate the Herfindahl-Hirschman index (HHI). Show your calculations.
HHI =
(b) Calculate the four-firm concentration ratio (C4). Show your calculations.
(c) Assume that the firms with sales of $225,000 and $315,000 merged. Please calculate the C4
and the HHI after the merger takes place. You must show your calculations.
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Macroeconomics Principles And Policy
Authors: William J. Baumol, Alan S. Blinder
11th Edition
0324586213, 978-0324586213
