Calculate each of the common economic industry measures below.a. In Roswell, New Mexico, the retail gasoline market consists of eight firms. Firm 1 has 40 percent of the market, Firm 2 has 30 percent, and the remaining firms have 5 percent each. What is the four-firm concentration ratio for this industry?b. The mallet 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. What is the Herfindahl-Hirschman index for the widget industry? Based on the U.S. Department of Justice merger guidelines described in the text, do you think the Justice Department would be likely to block a merger between firms 5 and 6?c. Levitt Inc. operates in an industry that has a Rothschild index of 0.78. The firm gained access to a government report that revealed the own-price elasticity of market demand within the industry to be -2.6. Use this information to obtain an estimate of the own-price elasticity of demand for the product produced by the firm.d. Elliot Industries has a rather unique product that sells for $25 per unit, and the marginal cost is $11.25. Determine the Lerner index for the firm. Does this index indicate market power?

Calculate each of the common economic industry measures below.a. In Roswell, New Mexico, the retail gasoline market consists of eight firms. Firm 1 has 40 percent of the market, Firm 2 has 30 percent, and the remaining firms have 5 percent each. What is the four-firm concentration ratio for this industry?b. The mallet 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. What is the Herfindahl-Hirschman index for the widget industry? Based on the U.S. Department of Justice merger guidelines described in the text, do you think the Justice Department would be likely to block a merger between firms 5 and 6?c. Levitt Inc. operates in an industry that has a Rothschild index of 0.78. The firm gained access to a government report that revealed the own-price elasticity of market demand within the industry to be -2.6. Use this information to obtain an estimate of the own-price elasticity of demand for the product produced by the firm.d. Elliot Industries has a rather unique product that sells for $25 per unit, and the marginal cost is $11.25. Determine the Lerner index for the firm. Does this index indicate market power?