Exercises . Exercise #1. Suppose a market is composed of many firms with their pre- merger market shares illustrated in the table. Firms A and B announce they want to merge. Note that each firm under the category All other firms has a market share less than 1%. Q1) Compute the CR, pre-merger. Company Market Share (%) A 19.4 B 15.0 C 30.7 D 20.4 . Q2) Compute the CR, post-merger assuming the market share of the E 2.9 merged firm is the sum of their market shares pre-merger. F 1.7 Q3) Compute the HHI pre-merger. Q4) Compute the HHI post-merger assuming the market share of the merged firm is the sum of their market shares pre-merger. G 1.7 All other firms 8.2 Total 100 30