Suppose that a firm located in Cleveland, Ohio, has entered the same industry as the Dallas company discussed in Problem 26-14. The new firm captures a 5 percent market share, and the market share of one of the smallest three original incumbents
declines to 5 percent as well. After the Cleveland firm 's entry into the industry, what are the values of the four-firm concentration ratio and of the Herfindahl-Hirschman Index?

Problem 26-14

Suppose that a company based in Dallas, Texas, confronts only four other rival firms. Its own market share is 35 percent, which ties it with the other largest producer and seller in the industry. The other three firms each have a 10 percent market share. What is the four-firm concentration ratio for this industry?