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Firm Market Share Ted 15% Sid 25% Donna 20% Betsy 23% Will 17% What is the current Hirfindahl-Hirschmann Index? Suppose that Ted and Sid merge.

Firm

Market Share

Ted

15%

Sid

25%

Donna

20%

Betsy

23%

Will

17%

What is the current Hirfindahl-Hirschmann Index? Suppose that Ted and Sid merge. What would be the new Herfindahl-Hirschmann index for the industry? Suppose that instead of merging with Sid, Ted merges with Will. What would be the new Hirfindahl-Hirschmann index for the industry?

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