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poizon [28]
3 years ago
13

An industry consists of three firms with sales of $355,000, $825,000, and $435,000.

Business
1 answer:
iogann1982 [59]3 years ago
5 0

Answer:

Calculating Herfindahl-Hirschman Index and Four-Firm Concentration Ratio:

a. Herfindahl-Hirschman index (HHI) = 3,814

b. The four-firm concentration ratio (C4) = 1

c. If the two firms with sales of $355,000 and $435,000 merged, the resulting HHI would increase by 1,723 to 5,537.  The post-merger HHI now exceeds that allowed under the Guidelines (2,500). The increase in HHI is more than that permitted under the Guidelines (200), the merger is likely to be blocked by the Department of Justice.

Explanation:

a) Data and Calculations:

Sales of three firms in an industry:

                            Sales          Industry Share

Firm A sales = $355,000        22% ($355,000/$1,615,000 * 100)

Firm B sales =   825,000         51% ($825,000/$1,615,000 * 100)

Firm C sales =   435,000        27% ($435,000/$1,615,000 * 100)

Total sales =  $1,615,000

Herfindahl-Hirschman index (HHI) = 3,814 (22² + 51² + 27²)

Four-firm concentration ratio (C4) = Sales of the four largest firms/Industry sales = $1,615,000/$1,615,000

If the two firms with sales of $355,000 and $435,000 were to merge, the new Herfindahl-Hirschman index (HHI) = 5,537(49² + 51²)

Increase in HHI as a result of the merger = 1,723

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Answer:

Instructions are listed below

Explanation:

Giving the following information:

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Mar. 9 Sale 175 units

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3 years ago
Pompeii, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the ta
Zielflug [23.3K]

Answer:

operating cash flow = $21307.5

Explanation:

given data

sales = $50,000

costs = $23,000

depreciation expense = $2,250

interest expense = $2,000

tax rate = 23 percent

solution

we get here operating cash flow for that

EBIT  = Sales - Costs - Depreciation   .............1

EBIT  = $50,000 - $23,000 - $2,250

EBIT   = $24750

and taxes is

taxes = tax rate × EBIT    ..........2

taxes = 0.23 × $24750

taxes = $5692.5

so here operating cash flow that is

operating cash flow = EBIT + Depreciation - Taxes   ..........3

operating cash flow = $24750 + $2,250 - $5692.5

operating cash flow = $21307.5

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3 years ago
After finishing college, Nathan joined his uncle's company in Miami, FL, a company that buys bauxite, copper, and other minerals
julsineya [31]

After finishing college, Nathan joined his uncle's company in Miami, FL, a company that buys bauxite, copper, and other minerals from the country of Chile, and brings them into the U.S. Everyday, he brokers trades with mines in Chile. His uncle's company is in the export-The statement is False

Explanation:

From the information given in the question it is clear that company that buys bauxite, copper, and other minerals from the country of Chile, and brings them into the U.S.-S<u>o Nathan uncles company is an importer of bauxite, copper, and other minerals </u>

<u></u>

<u></u>

The term importer refers to the country who imports goods and service from other countries.

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<u />

<u>Exporting  means goods and services which are produced in one country are purchasedby other countries.</u>

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Read 2 more answers
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Free_Kalibri [48]

Answer:

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alexdok [17]

Answer:

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