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1- An industry is comprised of 10 firms, each with an equal market share. (a) What is the four-firm concentration ratio of this industry? Please

1- An industry is comprised of 10 firms, each with an equal market share.

(a) What is the four-firm concentration ratio of this industry? Please show your calculations.

(b) What is the HHI for this industry? Please show your calculations.

2- Will a vertical integration between two firms lead to an increase in market power for the merged firm in either of the market segments the two firms operated in before the merger? Please explain.

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