Calculate the four-firm concentration ratio

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Reference no: EM13885839

An industry consists of three firms with sales of $175,000, $555,000, and $205,000.

a. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Round to the nearest integer.

b. Calculate the four-firm concentration ratio (C4).

c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $175,000 and $205,000?

Reference no: EM13885839

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