There are nine firms in industry X. The first firm’s sale is $300,000, the second firm’s...

There are nine firms in industry X. The first firm’s sale is $300,000, the second firm’s sale is $250,000, the third firm’s sale is $200,000, the fourth firm’s sale is $150,000. There are 5 other firms, each generates sales of $80,000.

1. Calculate two measures of concentration.

2. If the second and third firms merged together, recalculate the two measures of concentration and determine whether the merger caused a higher concentration or not?

Expert Solution

Rahul Sunny answered 7 months ago

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