An industry consists of three firms with sales of $25, $45, and $55. a. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Enter your response rounded to the nearest integer.

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Chapter15: Oligopoly And Strategic Behavior
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Economics

An industry consists of three firms with sales of $25, $45, and $55.

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 $25 and $45?  

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