does government not do that? If not, how can regulation stay ahead of rogue businesses that push the

limits of the system until it breaks?
278 11 • Problems

Problems

35. Use Table 11.5 to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a

concentrated market or not?

GM

19%

Ford

17%

Toyota

14%

Chrysler 11%

TABLE 11.5

Global Auto

Manufacturers

with Top Four

U.S. Market

Share, June

2013 (Source:

http://www.zacks.com/

commentary/

27690/auto-

industry-stock-

outlook-

june-2013)

36. Use Table 11.5 and Table 11.6 to calculate the Herfindahl-Hirschman Index for the U.S. auto market.

Would the FTC approve a merger between GM and Ford?

Honda

10%

Nissan

Hyundai

Kia

Subaru

7%

5%

4%

3%

Volkswagen 3%

TABLE 11.6 Global

Auto Manufacturers

with additional U.S.

Market Share, June

2013 (Source:

http://www.zacks.com/

commentary/27690/

auto-industry-stock-

outlook-june-2013)
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