_| |_ 4. (10 points) A student in a managerial economics class calculated the four-rm concentration ratio and HHI for industries A and B. What is the proper conclusion she can draw from the following ndings? Four-rm Concentration ratio HHI 3,200 2,500 (a) Is either industg a perfect monopoly? Please explain using the information in the question. (b) Is either indusg perfectly competitive? Please explain using the information in the question. [Note: a perfect monopoly is a market that meets all the assumptions of a monopoly, and a perfectly competitive market is one that meets all the assumptions of a perfectly competitive market] 5. (10 points) (a) Assume that two rms A and B are in different industries (like computer software and computer hardware). What impact will a merger between these two rms have on the number of rms in each industry after the merger? Please give an explanation. (b) Current automobile companies are facing a shortage of computers chips used in cars to run various parts of the car, and therefore supply of cars has decreased since a necessary part(s) is not available. If an auto company like General Motors (GM) decided to buy a chip manufacturing company to ensure that it did not face a chip shortage in the future, would such a purchase lead to more concentration in either the auto industry or the chip-manufacturing industry? Please give an explanation