FACT #2: Suppose that we observe two markets. Market 1 has 6 firms with market shares as follows:

MARKET 1: Ricky Corp. has 23% market share, Julien Inc. has 20% market share, Bubbles International has 18% market share, Cory and Trevor Corp. has 15% market share, Lucy Inc. has 13% market share, and Sarah International has 11% market share.

And Market 2 has 6 firms with market shares as follows:

MARKET 2: Chandler Corp. has 25% market share, Rachel Inc. has 21% market share, Ross International has 20% market share, Monica Corp. has 15% market share, Joey Inc. has 12% market share, and Phoebe International has 7% market share.

1.Using Fact 2, the Market 2 HHI is A) 1549.

B) 1768.

C) 1884.

D) 1925.

E) 2003.

2.Using Fact 2, the Market 1 HHI is

A) 1549.

B) 1768.

C) 1884.

D) 1925.

E) 2003.

3.Using Fact 2, according to HHI, which market is more competitive?

A)Market 1.

B)Market 2.

C)Market 1 and Market 2 are equally competitive according to HHI.

D)Not enough information to answer this question.

4.Using Fact 2, suppose that Cory and Trevor Corp. merges with Sarah International then the Market 1 HHI becomes and now Market 1 is competitive than Market 2.

A) 2128; more.B) 2128; less.C)2098; more.D) 2098; less.