need answers immediately thanks! E SyltusforlBA.50100-5 SI Homework 11:20f 2, Ch
ID: 1136900 • Letter: N
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need answers immediately thanks!
E SyltusforlBA.50100-5 SI Homework 11:20f 2, Ch. X caSecure https/newconnectmheducation.com/low/connect.html Apps For quick access, place your bookmarks here on the bookmarks bar. Import bookmarks now. Homework 11: 2 of 2, Chapter 7 Submitted 6001/70 Total points award An industry consists of three firms with sales of $355.000, $825,000, and $435.000 a. Calculate the Herfindahl-Hirschman index (HHI) Instruction: Enter your response rounded to the nearest integer 3.34/10 points awarded 3,814 O Scored b. Calculate the four-firm concentration ratio (Ca eBook Print Reterences 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 $355.000 and $435,000 No Yes e.. a .Lalixial-N1-0.1. PanMm@Explanation / Answer
Solution:
(A)
Total sales of the industry=355000+825000+435000=1615000
Firm A : 355,000/1615000=0.22
Firm B: 825,000/1615000=0.51
Firm C: 435,000/1615000=0.27
HHI=10000[ (0.22)^2 + (0.51)^2+ (0.27)^2]=3814
This industry is highly concentrated
(B)
C3=(355,000/1615000 + 825,000/1615000 + 435,000/1615000) =1
(C)
HHI=10000*[ (355,000)/(1615000)^(2)+(435000/16150001)^2] =5400
Yes
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