Calculate the four-firm concentration ratio

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An industry consists of four firms with sales of $300,000, $700,000 and $250,000, and $400,000.

Calculate the Herfindahl-Hirschman index (HHI). SHOW ALL WORK

Calculate the four-firm concentration ratio (C4). SHOW ALL WORK

Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you think the Department of Justice would attempt to block a horizontal merger between two firms with sales of $300,000 and $400,000? Explain

Reference no: EM131169431

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