An industry consists of three firms with sales of $ 300,000, $ 700,000, and $ 250,000. a.

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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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Managerial Economics and Business Strategy

ISBN: 978-0073523224

8th edition

Authors: Michael Baye, Jeff Prince

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Question Posted: Apr 18, 2014 09:03 AM

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An industry consists of three firms with sales of $ 300,000, $ 700,000, and $ 250,000. a.

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a The HHI is b The fourfirm concentration ratio is 100 percent c If the firms with s...View the full answer

Managerial Economics and Business Strategy

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