suppose a market consists 3 firms ( firm A, firm B, firm C) and firm A's sales account for 40% of market sales, while firm B and C each control 30% of the market. in this market, the four-firm concentration ration is therefore __________ and the Herfindahl-Hirshman index is equal to _____________. if the firm B and firm C merge, the new value of the Herfindahl-Hirshman index would change to__________. sothe Departement of Justice_________ likely to block this merger.    suggestions for the first:  suggestions for the second:  suggestions for the third:

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
icon
Related questions
Question

EMERGENCY PLEASE:

suppose a market consists 3 firms ( firm A, firm B, firm C) and firm A's sales account for 40% of market sales, while firm B and C each control 30% of the market. in this market, the four-firm concentration ration is therefore __________ and the Herfindahl-Hirshman index is equal to _____________.

if the firm B and firm C merge, the new value of the Herfindahl-Hirshman index would change to__________. sothe Departement of Justice_________ likely to block this merger. 

 

suggestions for the first: 

suggestions for the second: 

suggestions for the third: 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Herfindahl - Hirschman Index
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning