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

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Chapter1: Making Economics Decisions
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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
Transcribed Image Text: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
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