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Captain Catahoula and Bow Wow Wonder are two of the four firms in the dog food industry. Before they notify the Federal Trade Commission and the Department of Justice of their plans to merge, Captain Catahoula hires you to determine the concentration of this industry.

Use the table to calculate the Herfindahl–Hirschman Index (HHI) for this dog food industry and then complete the sentence.

What is the HHI for this dog food industry?

You report that this industry is:

Captain Catahoula and Bow Wow Wonder are two of the four firms in the dog food industry. Before they notify the Federal Trade

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Answer #1

HHI = sum of the squares of the market share of each firm

= 10^2+14^2+36^2+40^2

= 100+196+1296+1600

= 3192

The industry is highly concentrated

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