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Link: https://www.stlouisfed.org/on-the-economy/2018/june/hhi-competition-community-banks 4) Identifying Market Power (10 points) Read the article provided below and answer the following questions. https://www.stlouisfed.org/on-the-economy/2018/june/hhi-competition-community-banks a) Assume there are only six
Link: https://www.stlouisfed.org/on-the-economy/2018/june/hhi-competition-community-banks
4) Identifying Market Power (10 points) Read the article provided below and answer the following questions. https://www.stlouisfed.org/on-the-economy/2018/june/hhi-competition-community-banks a) Assume there are only six banks in a market with market shares of 25, 20, 15, 14, 13, and 13 percent. Calculate the Herfindahl Index (HHI) for this market. b) Ifthe largest two banks want to merge, how will this impact the HHI? c) Will the DOJ be concerned with the impact on the market?
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International Economics
Authors: James Gerber
6th edition
978-0132950145, 132950146, 132948915, 978-0132948913
