Calculate the premerger herfindahl-hirschman index

Assignment Help Business Economics
Reference no: EM133125645

You are the manager in a market composed of 12 firms, each of which has a 8.33 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors.

Instructions: Enter your responses rounded to the nearest penny (two decimal places).

a. Calculate the premerger Herfindahl-Hirschman index (HHI) for this market.

b. Suppose that any two of these firms merge. What is the postmerger HHI?

c. Based only on the information contained in this question and on the U.S. Department of Justice Horizontal Merger Guidelines described in this chapter, do you think the Justice Department would attempt to block a merger between any two of the firms?

Multiple choice

  • It may but will also consider other factors
  • It likely will not
  • It likely will

Reference no: EM133125645

Questions Cloud

What is the breakeven point in number of repairs per month : Fixed costs are $24,000 per month and variable costs are $500 per repair. The shop does 400 repairs per month. What is the breakeven point in number of repairs
Private portfolio investments in developing countries : To what extent do private portfolio investments in developing countries benefit the recipient countries? What are the potential costs and risks to both investor
Higher payoff in the sequential game : Firm 2 gains a higher payoff in the sequential game where it moves first compared to the sequential game where it moves second.
Compute the amount to be reported as income : Compute the amount to be reported as income assigned to non-controlling shareholders in the 20X8 consolidated income statement
Calculate the premerger herfindahl-hirschman index : You are the manager in a market composed of 12 firms, each of which has a 8.33 percent market share. In addition, each firm has a strong financial position and
Family purchasing decisions : How has the supply and demand for a specific product affected your or your family's purchasing decisions? Which variables most affect your decision to either bu
Optimal profit maximizing quantity : Suppose you estimate the short-run total cost function to be TC = 200 + 10Q + 0.1Q2. Also, suppose you can sell every unit produced at a $500 price so you have
What is the investment in operating capital : You collected the following data on a company: Based on the relevant data, what is the investment in operating capital in 2021
What conditions would a business wish to enter foreign : Under what conditions would a business wish to enter foreign markets by extending licenses or franchises to local businesses to produce its goods?

Reviews

Write a Review

Business Economics Questions & Answers

  Exactly equal the stream of installments

Assume I won 100 million dollars in a lottery that pays installments of 20 million dollars a year for five years or a lump sum of less than 100 million dollars. If I take the installments, my first installment would come the day I claimed my winnings..

  Present value of deposits today

You deposit 402 dollars in an account every year for 9 years that earns 9 percent annual interest. What is the present value of your deposits today (the present value of the annuity at time 0)? (your first deposit will be exactly 1 year from now a..

  What are the impacts of religion on personal ethics

How are the contributions from Socrates, Plato, and Aristotle applicable in the modern workplace?

  A good is not depletable

A good is not depletable if:

  What is the capitalized cost of a structure

What is the capitalized cost of a structure that will require construction cost of P1,000,000 immediately and P80,000 each year for the next four years and annu

  Discuss risks that you may face during semester as student

Identify and discuss risks that you may face during a semester as a student. Classify such risks into three groups, i.e., risks that insurance contracts generally exist to help you manage them, risks that some type of government or social policy exis..

  About monopoly markets and markets in oligopoly

Based on what you have learned about monopoly markets and markets in oligopoly, which of these two do you believe is more harmful for the consumers and for the economy, and why? Do you believe all monopolies should be considered illegal?

  Why sports economists believe ticket prices are too low

Explain, using managerial economics, why sports economists believe ticket prices are too LOW. No more than 75 words, please. You can do an excellent job with 40 - 50 words if you are concise.

  Derive the demands faced by every firm

Consider a linear city of length 1 in which the consumers are uniformly distributed. There are two firms located at the extremes of the linear city: firm 1 is located at the left-hand extreme, and firm 2 is located at the right-hand extreme. Derive t..

  Illustrate what other additional information do you need

Illustrate what other additional information do you need, and how would you proceed if you had that information.

  Q suppose that the federal reserve lowers the required

q. suppose that the federal reserve lowers the required reserve ratio from 0.10 to 0.05. how does this affect the

  Levied to reduce consumption of goods-to raise tax revenue

Taxes on goods and services like alcohol, tobacco, and gambling winnings (and maybe someday sugary foods and marijuana) are levied to reduce consumption of such goods and to raise tax revenue (

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd