Computing the four-firm ratio

Assignment Help Microeconomics
Reference no: EM1370391

An industry consists of three firms with sales of $200,000, $500,000, $400,000.

a. Compute the Herfindal-Hirschmann index (HHI)

b. Compute the four-firm ratio. (C^4)

c. Based on the US Dept. of Justic Mergers Guidelines do you think the dept would block the merger between the firms with sales of $200,000 and $400,000. Explain your findings.

Reference no: EM1370391

Questions Cloud

Cost minimizing combination of labor and capital : A manager hires labor and rents capital equipment in a competitive market. The current wage is $6.00 per hour and capital is rented at $12.00 per hour.
What are the issues here - global business : What are the issues here and what will you do? Discuss logically and clearly - Global business
Capital-marginal productivity of labor : Determine the rate of can rent capital and marginal productivity of labor at its new targeed level of output. To minimize the cost, the car company should hire capital and labor until the marginal rate of subsitution reaches what portion?
Calculating rate of return : You are bullish on Avusa stock. The current market price is $50 a share, and you have $5000 of your own to invest.
Computing the four-firm ratio : An industry consists of three firms with sales of $200,000, $500,000, $400,000. Compute the Herfindal-Hirschmann index (HHI)
Write assembly program print binary representation-integers : Write the assembly program called hw6_ex1, stored in file hw6_ex1.asm. This program must prompt user to enter signed 32-bit integer. Program must print out binary representation of the integer.
Describe about classical organization theory : Explain the basic thinking underlying classical organization theory. How does Adam Smith's conception of division and separation of labor relate to the classical model of organization theory?
Discussion on currency issues : Determine what effect on a country's current account balance is an increase in use of quotas expected to have? Would your answer change if other governments retaliate? If so, how?
Null and alternate hypothesis - research and evaluation : What is your decision regarding the HO. In other words, do you Accept or Reject the Principal's Null Hypothesis? Be specific as to why you decided to accept or to reject the Null Hypothesis.

Reviews

Write a Review

Microeconomics Questions & Answers

  Average variable cost function

A firm has determined that its variable costs are given by the following relationship:

  Total revenue with the price reduction

What is the Exy and what does that number mean and what is the relationship between these two goods - What would happen to total revenue with the price reduction

  Question of present value

What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?

  Practical problems in price theory

The problem in economics in price theory deals with deriving maximum marginal utility and marginal rate of substitution and price elasticity of demand.

  Increasing equilibrium quantity

Do you agree that the only way to raise equilibrium quantity is to raise supply and demand together? Why agree or why not agree?

  Arc-approximation formula

Use arc-approximation formula to compute the price-elasticity of demand coefficient of the firm's product demand between the (quantity, price) points of (100, $20) and (300, $10).

  Estimating supply curves

Compute the quantity supplied by each firm at prices of $1, $1.50, and $2. What is the minimum price necessary for each individual firm to supply output?

  Evaluate price elasticity of demand

Evaluate price elasticity of demand

  Difference between accounting and economic profit

What is the law of diminishing returns? Can you provide an example of when diminishing returns have set in (could set in) at a work place?

  How would you know demand has increased

How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)

  What is the socially optimal level of phosphorus emissions

How many units of phosphorus will these two firms emit if the phosphorus emissions are left unregulated? What is the socially optimal level of phosphorus emissions in the river?

  New demand curve of chevrolet

Find the equation of the new demand curve for Chevrolets. Plot the new demand curve, D1 c' and, on the same graph, plot the curve for Chevrolets, D c'. found in 2 (d).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd