The xyz widget industry is comprised of six firms of varying sizes. firm 1 has 35 percent of the market, firm 2 has 25 percent, and the remaining firms have 10 percent each.
(a)-what is the herfindahl-hirschman index for the widget industry?
(b)-based on the u. s. department of justice merger guidelines, do you think the justice department would be likely to block a merger between firms 5 and 6? why, or why not?
(c)- suppose another industry has a herfindahl index of 4000. what can you conclude about the relative competitiveness of these two industries?
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