4. The following table is the summary of sales in million dollar in three markets. The...

 

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4. The following table is the summary of sales in million dollar in three markets. The firms are listed in a descending order by sales (i.e., none of the firms included in "Others" has market sales larger than firm E). Firm Market 1 Market 2 Market 3 A 70 80 120 B 40 80 120 C 40 80 120 10 80 120 E 10 20 120 Others 30 60 0 (1) Compute C4 for each market. Which market is most concentrated according to C4? (2) Consider Market 1. Calculate the range of HHI for Market 1. Do the same calculation for Market 2 and 3, respectively. (3) Suppose that the critical value of HHI is 1800 in applying antitrust policies (e.g. merger guidelines). Why would Market 1 be considered more of a threat 2 4. The following table is the summary of sales in million dollar in three markets. The firms are listed in a descending order by sales (i.e., none of the firms included in "Others" has market sales larger than firm E). Firm Market 1 Market 2 Market 3 A 70 80 120 B 40 80 120 C 40 80 120 10 80 120 E 10 20 120 Others 30 60 0 (1) Compute C4 for each market. Which market is most concentrated according to C4? (2) Consider Market 1. Calculate the range of HHI for Market 1. Do the same calculation for Market 2 and 3, respectively. (3) Suppose that the critical value of HHI is 1800 in applying antitrust policies (e.g. merger guidelines). Why would Market 1 be considered more of a threat 2