Homework AssignmentThe Nature of IndustryFor this week read Chapter 7, pages 245-273Answer the follo

Homework AssignmentThe Nature of IndustryFor this week read Chapter 7, pages 245-273Answer the following questions:Question 2. On page 269Calculate the Herfindahl-Hirschman index (HHI). SHOW ALL WORK Calculate the four-firm concentration ratio (C4). SHOW ALL WORKBased on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you think the Department of Justice would attempt to block a horizontal merger between two firms with sales of $300,000 and $250,000? ExplainQuestion 4. On page 269A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market.What price does this firm charge its customers? SHOW all workBy what factor does this firm mark up its price over marginal cost? SHOW all workDo you think this firm enjoys much market power? ExplainQuestion 13Firms like Papa John’s, Domino’s, and Pizza Hut sell pizza and other products that are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of these firm’s products permits them to charge prices above marginal cost. Given these observations, is the pizza industry likely a monopoly, perfectly competitive, monopolistically competitive, or an oligopoly? Use the causal view of structure, conduct, and performance to explain the role of differentiation in the market for pizza. Then apply the feedback critique to the role of differentiation in the industry.