please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly The following table represents the market share percentage for each firm in a hypothetical industry.FirmABC DEFGHMarket Share156 12 7 20 10 19 11The four-firm concentration ratio for this industry is ☐ (Enter your response as an integer.)The Herfindahl-Hirschman Index (HHI) for this industry is (Enter your response as an integer.)Would the Justice Department consider this industry as unconcentrated, moderately concentrated, or concentrated?OA. Concentrated because the four-firm concentration ratio is over 60.OB. Moderately concentrated because the HHI is below 1,800.C. Unconcentrated because the four-firm concentration ratio is under 90.D. Mildly concentrated because the HHI is under 2,000.

The four-firm concentration ratio is the concentration ratio of the 4 firms with the largest market…

Answered: The following table represents the…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.2P

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what is the Four-firm concentration ratio (CR4)? what is the Herfindahl-Hirshman Index (HHI)? and how are they different?
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oligopoli 5.1 The following table represents the market share percent- age for each firm in a hypothetical industry. Firm Market Share A 15 C D E 20 B 6 12 7 H 19 11 F G 10 a. Calculate the four-firm concentration ratio for this industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for this industry. c. Would the Justice Department consider this industry as unconcentrated, moderately concentrated, or concen- trated? Why?
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Rainbow Wer-Odeon Bargaining Game Rainbow Reeder Rep S O St O O PH M Rainbow Writer (RW) is a small online company selling a highly rated software package for printing color labels directly onto CDs. The firm currently earns a profit of $2 million per year selling its package exclusively on its Web site. Odeon, the producer of the most popular software package for editing and burning CDs and DVDs has expressed interest in bundling Rainbow Writer's product into its own package. Odeon expects that bundling would further boost its sales and allow it to sell the new bundled product at a higher price, thus raising its profits beyond its current profit of $12 million. Figure 5 shows the decision tree for the Rainbow Writer-Odeon bargaining game. Refer to Figure 5. How will Rainbow Writer respond to Odeon's two possible offers? O Rainbow Writer will only accept an offer of $40 per copy of the software package. O Rainbow Writer will only accept an offer of $30 per copy of the software package.…
Consider an industry consists of three firms (Firm-A, Firm-B and Firm-C) with sales of AED300,000, AED700,000, and AED250,000; respectively. Calculate the Herfindahl-Hirschman index (HHI) for the industry. Calculate the four-firm concentration ratio (C4). Do you think the ‘Department of Justice’ (see the guideline below) would attempt to block a horizontal merger between Firm-A and Firm-C)? The Department of Justice’s Guidelines (Suppose): Suppose that the Department of Justice’s Guidelines suggest that antitrust authorities are more likely to challenge a merger when the relevant Herfindahl-Hirschman index is greater than 2,500 and the resulting increase in the index as a result of the merger is more than 200.
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