Suppose the Industry for Washing Machines Has Only Four Firms

question 113

Short Answer

Suppose the industry for washing machines has only four firms.The market shares are: Firm A,40 percent; Firm B,20 percent; Firm C 20,percent; and Firm D,20 percent.
a.What is the Herfindahl-Hirschman Index (HHI)?
b.If Firms C and D were to announce a merger,would the Federal Trade Commission oppose the merger?

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