Which of the following measures is used by the Justice Department to evaluate the competitive effects...
Which of the following measures is used by the Justice Department to evaluate the competitive effects of proposed mergers?
a. The Lerner Index.
b. The eight-firm concentration ratio for an industry.
c. The four-firm concentration ratio for an industry.
d. The Herfindahl-Hirschman Index.
Homework Answers
Option D
Mergers and acquisitions are common in the business world. It is a part of the business strategy where sometimes it vertical or horizontal. The antitrust division of the justice department can disapprove any merger it seems that it will not good for the overall market. Justice Department uses the Herfindahl-Hirschman index for this which is the sum of the squared market share of each company in that sector. So if there is only 1 company then the HHI value would be 10000 which is a monopoly.
HHI above 2000 is considered a concentrated market and if any merger raises HHI value by 200 then the Justice Department raises concerns about that.
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Which of the following measures is used by the Justice
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All of the following are measures of market power except the: A) four-firm concentration ratio for an industry. B) Herfindahl-Hirschman Index. C) Minimum-Efficient Scale Index. D) Lerner Index.
4. If an industry has a Herfindahl-Hirschman Index of 2,200 the Justice Department classifies it as:...
4. If an industry has a Herfindahl-Hirschman Index of 2,200 the Justice Department classifies it as: O moderately concentrated. competitive. unconcentrated. highly concentrated.
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4) Which of the following is the best example of a perfectly competitive market? A) farming...
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Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its...
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Consider a market of pens where there are 15 firms: one fimm sells 870 pens, 4...
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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?
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ไม่ presents i | New Tab newconnect.ml This window shows your responses and whet was marked...
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A homogeneous good industry is composed of 3 firms. You are given the following information on...
A homogeneous good industry is composed of 3 firms. You are given the following information on output, price and marginal cost of each firm: q, 200 q2-500 93100 p- 50 41.7 c2 29.2 c3 45.8 Remember that for each firm where α, is the market share of firm i and η is the price elasticity of demand. a)Calculate the 2-firm concentration ratio. b)Calculate the Herfindahl index c) Calculate the number equivalent. d) Calculate the Lerner index of ach firm. e...
4. If an industry has a Herfindahl-Hirschman Index of 2,200 the Justice Department classifies it as: O moderately concentrated. competitive. unconcentrated. highly concentrated.
4) Which of the following is the best example of a perfectly competitive market? A) farming B) diamonds C) athletic shoes D) soft drinks E) electricity distribution 5) The Herfindahl-Hirschman Index for a monopoly is A)1 B) 100 C) 10,000. D) undefined. 6) amarket than in a The Herfindahl-Hirschman Index is definitely larger in a A) monopoly; perfectly competitive B) monopolistic competitive; monopoly C) perfectly competitive; monopoly D) perfectly competitive; monopolistic competitive market.
Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its own market share is 30 percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is 13.33 percent. Then a sixth firm, located in Cleveland, Ohio, enters the same industry. The new firm captures 6.67percent market share, and the market share of one of the smallest three original incumbents declines...
Consider a market of pens where there are 15 firms: one fimm sells 870 pens, 4 firms sell 250 pens each, and 10 firms sell 120 pens each. a. Determine the market shares for each firm. b. Calculate the four-firm concentration ratio for this industry. c. Calculate the eight-firm concentration ratio for this industry. d. Calculate the Herfindahl-Hirshman index for this industry. e. What are the measures above used for?
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...
Which of the following are measures of industry concentration? A Four-firm concentration ratio @ HH index C Consumer surplus (D Four-firm concentration ratio and HHI index Question 2 In perfect competition, which is NOT true? (A) Every firm has a small but perceivable market power. (B) There are a large number of firms. © Firms are price-takers (D) Firms produce homogenous goods
ไม่ presents i | New Tab newconnect.ml This window shows your responses and whet was marked correct and incorrect from your previous atte Measures of Industry Concentration Exercise 2 (Algo) The following table presents information on the production of five firms that produce all of the output in an industry Instructions: Round your answers to two decimal places a. What is the four-firm concentration ratio for this industry? [8100 0 % b. What is the Herfindahl-Hirschman Index for this industry?...
A homogeneous good industry is composed of 3 firms. You are given the following information on output, price and marginal cost of each firm: q, 200 q2-500 93100 p- 50 41.7 c2 29.2 c3 45.8 Remember that for each firm where α, is the market share of firm i and η is the price elasticity of demand. a)Calculate the 2-firm concentration ratio. b)Calculate the Herfindahl index c) Calculate the number equivalent. d) Calculate the Lerner index of ach firm. e...
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