Question

Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the sales of the banks in the area.

Bank Name	Sales (in millions)
MegaBank	$1,100
City Bank	950
Nationwide Bank	845
Atlantic Savings	785
Bulk Bank	665
Metropolitan Bank	480
American Bank	310
Hometown Bank	260
Urban Bank	140

Use the above information to calculate the four-firm concentration ratio and the Herfindahl-Hirschman index in the current market.

Instruction: Enter your responses rounded to two decimal places.

     Four-firm concentration ratio: .___________________

     Herfindahl-Hirschman index: __________________

Answer 1