Computing the four-firm ratio

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An industry consists of three firms with sales of $200,000, $500,000, $400,000.

a. Compute the Herfindal-Hirschmann index (HHI)

b. Compute the four-firm ratio. (C^4)

c. Based on the US Dept. of Justic Mergers Guidelines do you think the dept would block the merger between the firms with sales of $200,000 and $400,000. Explain your findings.

Reference no: EM1370391

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