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 (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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  • CreatedApril 18, 2014
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