Solved: An industry consists of three firms with sales of 230000, Macroeconomics

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An industry consists of three firms with sales of 230000

An industry consists of three firms with sales of $230,000, $760,000, and $200,000.

a. Calculate the Herfindahl-Hirschman index (HHI).

Instruction: Round 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 $230,000 and $200,000?

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Macroeconomics: An industry consists of three firms with sales of 230000

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