Explore BrainMass

HHI Index

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

15. Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the sales of the banks in the area. Use this information to calculate the four-firm concentration ratio and the Herfindahl-Hirschman index. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you think the Justice Department is likely to challenge the proposed merger?
Bank Name Sales (in millions)
Mega Bank $900
City Bank $850
Nationwide Bank $735
Atlantic Savings $555
Bulk Bank $345
Metropolitan Bank $340
American Bank $265
Hometown Bank $120
Urban Bank $90

© BrainMass Inc. brainmass.com March 21, 2019, 10:51 pm ad1c9bdddf

Solution Preview

Dear Student,

Please see the attached Excel for the answer. The Justice ...

Solution Summary

The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. All the steps are clearly shown and formulas are provided so that the student can answer similar questions in the future. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.