Explore BrainMass

HHI Index

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

Determine whether the Justice Department would challenge a merger between two firms in an industry with 10 equalized firms, based on the Herfindhal index guidelines. (No other factor considered)

© BrainMass Inc. brainmass.com September 24, 2018, 7:25 am ad1c9bdddf - https://brainmass.com/economics/microeconomics/hhi-index-460284

Solution Preview

Percent share of each firm before merger=100%/10=10%
HHI Index=10^2+10^2+10^2+10^2+10^2+10^2+10^2+10^2++10^2+10^2=1000
HHI Index ...

Solution Summary

Solution determines whether the proposed merger in the given case is likely to be challenged.