Exercise 3. Assume there are 10 equally sized hospitals in a market area. 1. Calculate the HHI. [5] 2. Consider the case where two hospitals in the market area inform the Department of Justice (DOJ) that they wish to merge. (a) Assume the merger goes through. Recalculate the HHI. [5] [13) Compare two HHI you computed. How does the market concentration change? [5] (c) Assume the DOJ guideline to contest mergers is an HHI greater than or equal to 2500. Will the DOJ contest the two hospital merger? [5]