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
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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Food And Beverage Cost Control
Authors: Lea R. Dopson, David K. Hayes, Jack E. Miller
4th Edition
0471694177, 978-0471694175
