This problem is based upon two separate, distinct industries, each of which has ten

companies. Industry X has companies A, B, C, D, E, F, G, H, I, and J. Industry Y has

companies M, N, O, P, Q, R, S, T, U, and V. These two industries are completely

unrelated. There is no, absolutely no competition between any of the companies in

Industry X with any of the companies in Industry Y. This question is to examine the

degree of market concentration, and hence the competitive nature, within each industry.

Part A: Using the data in the tables below, calculate the 4-Firm Concentration Ratio and

the Herfindahl-Hirschman Index for each industry.

Industry

X

A

B

C

D

E

F

G

H

I

J

Market

Share

3.57

5

5

3.85

4.50

4.50

5.00

4.75

60.00

3.83

Industry

Y

M

N

O

P

Q

R

S

T

U

V

Market

Share

18.75

3.7

18.75

18.75

3.70

4.70

3.70

4.70

4.50

18.75

Industry X:

Four-Firm Concentration Ratio:

HHI:

Industry Y:

Four-Firm Concentration Ratio:

HHI:

Part B: Calculate the HHI in Industry X if Company I files to acquire Company B. Then,

using the United States Department of Justice guidelines, discuss whether or not

the DOJ could move to block the acquisition?

Part C: Calculate the HHI in Industry Y if Company V files to merge with Company O.

Then, using the United States Department of Justice guidelines, discuss whether

or not the DOJ could move to block the merger?