Firm A B с D E F If firms E and F in this table merged into a single firm, the Herfindahl index would Multiple Choice Market Share (%) 25 22 18 16 15 4 O not change. rise, as would the four-firm concentration ratio.
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- 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?Firm Market Share (%) A 40 B 30 C 20 D 5 E 5 Refer to the data. If Firm B merged with Firm E, the industry's four-firm concentration ratio would ____ and its Herfindahl index would ____. Multiple Choice rise; rise fall; rise remain the same; rise remain the same; fallsuppose 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 herfindahl-hirschman index of 2,915. case's share of that market was 13 percent, while fiat comprised just 7 percent of the market. if approved, by how much would the post merger herfindahl-hirschman index increase
- 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 CEconomics 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?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 2,765. Case’s share of that market was 22 percent, while Fiat comprised just 12 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase? Based only on this information, do you think the Justice Department would challenge the merger? Explain.
- 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?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.Use the following table to calculate the Herfindal-Hirshman Index for the U.S. auto market. Would the FTC approve a merger between Gm and Ford? Explain your response. The table is......... GM 19% Ford 17% Toyota 14% Chrysler 11%
- 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.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.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
