An industry consists of three firms with sales of $205.000, $745.000, and $305,000. a. Calculate the Herfindahl-Hirschman Index (HH). Instruction Enter your response rounded to the nearest integer 16.66 Calculate the four-firm concentration ratio (Ca Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $205,000 and $305,000? Yes O No

An industry consists of three firms with sales of $205.000, $745.000, and $305,000. a. Calculate the Herfindahl-Hirschman Index (HH). Instruction Enter your response rounded to the nearest integer 16.66 Calculate the four-firm concentration ratio (Ca Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $205,000 and $305,000? Yes O No

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 2E

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An industry consists of three firms with sales of $200,000, $500,000, and $400,000. a. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $200,000 and $400,000? O Yes O No Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.
Firm Market Share (%) A B C D E F 30 22 18 17 7 6 Refer to the data. Suppose that firms in this industry split up such that there were 50 firms, each with a 2 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be Multiple Choice 8 percent and 200. 8 percent and 8. 200 percent and 16. 100 percent and 10,000.
You are the manager in a market composed of eight firms, each of which has a 12.5 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors. a. Calculate the premerger Herfindahl-Hirschman index (HHI) for this market. b. Suppose that any two of these firms merge. What is the postmerger HHI? c. Based only on the information contained in this question and on the Horizontal Merger Guidelines described in this chapter, do you think the Justice Department (or FTC) would attempt to block a merger between any two of the firms? Explain
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Give typing answer with explanation and conclusion to all parts Analysts have estimated the inverse market demand in a homogeneous-product Cournot duopoly to be P = 130 −2 (Q1 + Q2). They estimate costs to be C1(Q1) = 22Q1 and C2(Q2) = 34Q2. Determine the reaction function for each firm. Firm 1: Q1 = ___ − ___Q2 Firm 2: Q2 = ___ − ___ Q1 Calculate each firm’s equilibrium output. Firm 1: ___ Firm 2: ___ Calculate the equilibrium market price. ___ Calculate the profit each firm earns in equilibrium. Firm 1: $ ___ Firm 2: $ ___
Economics An industry consists of three firms with sales of $25, $45, and $55.a. Calculate the Herfindahl-Hirschman index (HHI).Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $25 and $45?
Economics An industry consists of three firms with sales of $25, $45, and $55.a. Calculate the Herfindahl-Hirschman index (HHI).Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $25 and $45? Plz solutions part B and C
If the largest two firms in the textbook industry merged, their new total market share would equal 41% of the market. This industry's new HHI would be 2182. According to the FTC's historical guidelines for mergers, would the FTC approve this merger? Group of answer choices No answer text provided. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. Yes, the FTC would ignore the merger and allow it to go through. No, the FTC would probably challenge the merger.
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 c) Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you think that the Department of Justice would attempt to block a horizontal merger between two firms with sales of $300,000 and $250,000? Explain.
Suppose that the six firms in industry A have annual sales of 40, 35, 12, 5, 5, and 3 percent of total industry sales. For the six firms in industry B, the figures are 35, 18, 15, 14, 10, and 8 percent. b. Calculate the four-firm concentration ratio and the Herfindahl index for each industry and compare their likely competitiveness. Instructions: Enter your answers as whole numbers. Industry A four-firm concentration ratio = Industry A Herfindahl index = Industry B four-firm concentration ratio = Industry B Herfindahl index = c. Industry A will be ________ (more/less) competitive than industry B. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Answer the given question with a proper explanation and step-by-step solution. The inverse market demand in a homogeneous-product Cournot duopoly is P = 200 – 2(Q1 + Q2) and costs are C1(Q1) = 26Q1 and C2(Q2) = 32Q2. Firm 1: Q1 = ? - Q2Firm 2: Q2 = ? - Q1 b. Calculate each firm’s equilibrium output.Firm 1:Firm 2: c. Calculate the equilibrium market price.$ d. Calculate the profit each firm earns in equilibrium.Firm 1: $Firm 2: $
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 3,085. Case’s share of that market was 11 percent, while Fiat comprised just 7 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase?