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An industry consists of three firms with sales of $235,000, $680,000, and $315,000.
a. Calculate the Her find a hl-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 $235,000 and $315,000? (YES OR NO)
If a price in a competitive market is "too high to clear the market," what does this normally mean. Assume upward-sloping supply curves.
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Other things equal, increasing home prices tend to:
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Which of the coefficients are statistically significant and which are not? Explain. d. What percent of variation are restaurant sales explained by this equation?
There are three retirement plans under development. Each plan has a 6% compounded monthly and you cannot take a withdrawal until year 20. One plan requires a payment of X/year for the next 10 years. The other requires a payment of Y each year from ye..
Suppose that the economy improves and the crime rate in West Philadelphia drops, so that the marginal product and average product of a group of 100 police officers is now 55 arrests per hour for any number of police officers. What is the optimal allo..
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