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The problem gives this chart:

Competitor

Rank

Market A Market B Market C Market D

1 40 25 10 50
2 30 25 10 25
3 15 10 8 10
4 10 10 8 10
5 5 6 8 2
6 5 8 2
7 5 8 1
8 5 8
9 5 8
10 4 8
11 8
12 8
Totals 100 100 100 100

Compute the pre-merger HHI measures for each market. How would a merger affect the market's HHI?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9305853

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