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.

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

Students have asked these similar questions

corospond to this message. Gross Domestic Product (GDP) represents the total value of all goods and services produced by a country. The news reporter shows excitement because rising GDP signifies positive economic performance. Consumer spending has increased while businesses expand and new job opportunities become available. If the GDP rises, your delivery business will likely handle more packages as consumer purchasing increases. The increase in business activity will lead to more opportunities for your company to generate higher profits. You may need to take action by hiring additional staff and purchasing extra delivery vehicles or finding ways to improve your operation speed and efficiency to meet increased demand.

Please show work / explain how you get answer as well. Thank you!

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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

Want to see more full solutions like this?

Chapter 11 Solutions

Additional Business Textbook Solutions