Problem 07-02 (algo) An industry consists of three firms with sales of $310,000, $725,000, and $405,000. 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 $310,000 and $405,000?

Problem 07-02 (algo) An industry consists of three firms with sales of $310,000, $725,000, and $405,000. 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 $310,000 and $405,000?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 4.12P

See similar textbooks

Similar questions

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
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.
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.
The Australian airline industry is largely dominated by Qantas, Virgin Blue and Jetstar with a market share of about 90%. Answer the questions below. a) What is the market structure in which Qantas, Virgin Blue and Jetstar operate in Australia? Explain your answer using the market structure characteristics for the 3 firms (Qantas, Virgin Blue and Jetstar) b) Use a figure to explain what you understand by the term “Kinked demand curve” for Qantas, Virgin Blue and Jetstar market structure.
With an estimated market share of 60%, Atlas is the dominant company and the price leader in an oligopolistic steel industry. The remaining market share is distributed equally between ten companies. Suppose that one of those ten companies, Norton, attempts to gain market share by undercutting the price set by Atlas.Calculate the “Four Firm Ratio” and Herfindahl-Hirschman Index “HHI” in the above described market and interpret your answer. What model can best resemble this market? Briefly explain this model. In your opinion, what will be the effect of Norton’s attempt described above on Atlas’s market share: will it increase, decrease, or not affected at all? Justify your answer
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
With an estimated market share of 37%, Atlas is the dominant company and the price leader in an oligopolistic steel industry. The remaining market share is distributed equally between seven companies. Suppose that one of those ten companies, Norton, attempts to gain market share by undercutting the price set by Atlas. Calculate the “Four Firm Ratio” and Herfindahl-Hirschman Index “HHI” in the above-described market and interpret your answer. What model can best resemble this market? Briefly explain this model. In your opinion, what will be the effect of Norton’s attempt described above on Atlas’s market share: will it increase, decrease, or not affected at all? Justify your answer.
With an estimated market share of 37%, Atlas is the dominant company and the price leader in an oligopolistic steel industry. The remaining market share is distributed equally between seven companies. Suppose that one of those ten companies, Norton, attempts to gain market share by undercutting the price set by Atlas. Calculate the “Four Firm Ratio” and Herfindahl-Hirschman Index “HHI” in the above-described market and interpret your answer. What model can best resemble this market? Briefly explain this model. In your opinion, what will be the effect of Norton’s attempt described above on Atlas’s market share: will it increase, decrease, or not affected at all?
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.
Though Pepsi Company is a giant in the soft drinks industry, it faces tough competition in the market as there are many firms operating in this industry with differentiated products. Further, the company is spending a considerable amount as selling cost in order to increase its market share in the industry. Determine in which type of market structure the Pepsi Company is operating? a. Monopoly market b. Monopolistic competition c. Perfect competition d. Oligopoly market
Sainsbury's-ASDA merger blocked by the regulator (Competition and Markets Authority) (CMA) 1) What type of market or industry are both supermarkets? Justify your answer clearly. 2) Do you think the reasons for a merger between ASDA and Sainsbury mentioned in the news are justifiable? Why did the supermarkets want to merge? The deal would have created the UK's biggest supermarket chain, accounting for £1 in every £3 spent on groceries. Sainsbury's and Asda had said the planned tie-up would have cut their costs, allowing them to lower prices for consumers across the UK. Analysts also believed it was designed to help the two supermarkets counter the rise of discounters Aldi and Lidl in the increasingly competitive grocery market. 3) The CMA provides economic justifications to the merger block by regulators in the UK. Do you think the justifications are reasonable? Why was the CMA concerned? But the CMA, which had previously raised concerns about the deal, said the merger would lessen…