Suppose an industry has 10 firms, each with an equal 10 percent share of the market....
Suppose an industry has 10 firms, each with an equal 10 percent share of the market. According to the Herfindahl-Hirschman Index (HHI), if two firms propose to merge, will the Department of Justice and the Federal Trade Commission allow it?
I need answers for all three questions
A) First, the HHI before the proposed merger is _____
B) With the proposed merger, the HHI is ______
C)The Department of Justice and the Federal Trade Commission _________ challenge the proposed merger.
- Probably would not
- Would not
- Would
- May
The last one is fill in the blank
Homework Answers
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Suppose an industry has 10 firms, each with an equal 10 percent
share of the market....
Captain Catahoula and Bow Wow Wonder are two of the four firms in the dog food...
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...
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Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion....
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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...
Market share in the Widget industry Firm name Market share Big W 50 Widico 40 Widgotech 9 Widgette 1 Using the market shares in the table above, if Big W wants to buy Widgette, the Federal Trade Commission will probably approve the merger because the industry is moderately concentrated and the increase in the Herfindahl-Hirschman index (HH) is small enough. o block the merger because the industry is highly concentrated (HHI exceeds 2,500) and the increase in the HHI is...
An industry has 10 firms, each with a market share of 10 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. a. If 5 of the firms in the industry seek to merge, the Herfindahl index would change from 2,200 to 2,200. 600 to 1,000. 600 to 1,600. 1,000 to 2,200. b. This merger would be challenged, because of the value of the new Herfindahl index only. not...
You are the manager in a market composed of 19 firms, each of which has a 5.26 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors. Instruction: Enter your responses rounded to the nearest penny (two decimal places). a. Calculate the premerger Herfindahl-Hirschman index (HHI) for this market. 525.68 b. Suppose that any two of these firms merge. What is the postmerger HHI? c. Based only on...
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