a) The table below shows the global production (in millions of cigars) of cigars divided

on different cigar manufacturers Based on this information you should:

1. Calculate the market concentration using both the Herfindahl-Hirschman index

(HHI) and the CR4 concentration index.

2. Assume that the companies Montecristo and Cohiba merge. Make a brief statement about

how do you think the Swedish Competition Authority would comment on this company merger.Also discuss possible. weaknesses and / or what you as an analyst must take into account when calculating HHI and CR values.

3. What are the possible reasons for a competition authority to allow the above

merging?