Is it true that a merger between two films that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshmau Index? Explain briefly.

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Answer 1

Textbook Question

Chapter 11, Problem 1SCQ

Is it true that a merger between two films that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshmau Index? Explain briefly.

Expert Solution & Answer

To determine

Whether it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer to Problem 1SCQ

Yes, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Explanation of Solution

Since, the market shares of all the firms are included in the HHI calculation, so when there is a merger between the two firms the HHI will change.

So, in the case of four- firm concentration ratio it is possible that the merger between let’s say the 6^th and the 5^th largest firms in the market would create a new firm that may be ranked in the top four in the market.

So, in the case mentioned above a merger of the two firms that are neither in the top four, but still they would change the four-firm concentration ratio.

So, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

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Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & criminology professors. Assume that there are an equal number of economics and criminology professors. Assume further that econ professors all have the same level of health and criminology professors all have the same level of health. There is evidence of 2021 Insured? Avg. Expenditures Insured? Avg. Expenditures 2020 Economics Professors Criminology Professors Yes. Yes $25,000 $15,000 0000 ??? ??? $28,000 $10,000 I. moral hazard because in 2021 criminology professors dropped their coverage and health expenditures went down. II. adverse selection because in response to rising premiums after 2020, the professors with lower health expenditure dropped coverage Both I and II neither I nor II

Answer 2

Textbook Question

Chapter 11, Problem 1SCQ

Is it true that a merger between two films that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshmau Index? Explain briefly.

Expert Solution & Answer

To determine

Whether it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer to Problem 1SCQ

Yes, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Explanation of Solution

Since, the market shares of all the firms are included in the HHI calculation, so when there is a merger between the two firms the HHI will change.

So, in the case of four- firm concentration ratio it is possible that the merger between let’s say the 6^th and the 5^th largest firms in the market would create a new firm that may be ranked in the top four in the market.

So, in the case mentioned above a merger of the two firms that are neither in the top four, but still they would change the four-firm concentration ratio.

So, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

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Answer 3

Textbook Question

Chapter 11, Problem 1SCQ

Is it true that a merger between two films that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshmau Index? Explain briefly.

Expert Solution & Answer

To determine

Whether it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer to Problem 1SCQ

Yes, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Explanation of Solution

Since, the market shares of all the firms are included in the HHI calculation, so when there is a merger between the two firms the HHI will change.

So, in the case of four- firm concentration ratio it is possible that the merger between let’s say the 6^th and the 5^th largest firms in the market would create a new firm that may be ranked in the top four in the market.

So, in the case mentioned above a merger of the two firms that are neither in the top four, but still they would change the four-firm concentration ratio.

So, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

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Answer 4

Textbook Question

Chapter 11, Problem 1SCQ

Is it true that a merger between two films that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshmau Index? Explain briefly.

Expert Solution & Answer

To determine

Whether it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer to Problem 1SCQ

Yes, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Explanation of Solution

Since, the market shares of all the firms are included in the HHI calculation, so when there is a merger between the two firms the HHI will change.

So, in the case of four- firm concentration ratio it is possible that the merger between let’s say the 6^th and the 5^th largest firms in the market would create a new firm that may be ranked in the top four in the market.

So, in the case mentioned above a merger of the two firms that are neither in the top four, but still they would change the four-firm concentration ratio.

So, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Whether it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer to Problem 1SCQ

Yes, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Explanation of Solution

Since, the market shares of all the firms are included in the HHI calculation, so when there is a merger between the two firms the HHI will change.

So, in the case of four- firm concentration ratio it is possible that the merger between let’s say the 6^th and the 5^th largest firms in the market would create a new firm that may be ranked in the top four in the market.

So, in the case mentioned above a merger of the two firms that are neither in the top four, but still they would change the four-firm concentration ratio.

So, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer 8

Expert Solution & Answer

To determine

Whether it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer to Problem 1SCQ

Yes, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Explanation of Solution

Since, the market shares of all the firms are included in the HHI calculation, so when there is a merger between the two firms the HHI will change.

So, in the case of four- firm concentration ratio it is possible that the merger between let’s say the 6^th and the 5^th largest firms in the market would create a new firm that may be ranked in the top four in the market.

So, in the case mentioned above a merger of the two firms that are neither in the top four, but still they would change the four-firm concentration ratio.

So, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Whether it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer 12

Answer to Problem 1SCQ

Yes, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer 13

Explanation of Solution

Since, the market shares of all the firms are included in the HHI calculation, so when there is a merger between the two firms the HHI will change.

So, in the case of four- firm concentration ratio it is possible that the merger between let’s say the 6^th and the 5^th largest firms in the market would create a new firm that may be ranked in the top four in the market.

So, in the case mentioned above a merger of the two firms that are neither in the top four, but still they would change the four-firm concentration ratio.

So, it is true that a merger between two firms that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshman Index.

Answer 14

Ch. 11 - Is it true that a merger between two films that...Ch. 11 - Is it true that the four-firm concentration ratio...Ch. 11 - Some years ago. two intercity bus companies,...Ch. 11 - As a result of globalization and new information...Ch. 11 - Why would a firm choose to use one or more of the...Ch. 11 - Urban transit systems, especially those with rail...Ch. 11 - From the graph you drew to answer Exercise 11.6,...Ch. 11 - What real world changes made the deregulation...Ch. 11 - What are some of the benefits of the deregulation?Ch. 11 - What might some of the negatives of deregulation...

Is it true that a merger between two films that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshmau Index? Explain briefly.

Answer to Problem 1SCQ

Explanation of Solution

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