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QUESTION 34 Company Market Share Firm A 30% Firm B 15% Firm C 20% Firm D 20% Firm E 10%% Firm F 05%% Table 1

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QUESTION 34 Company Market Share Firm A 30% Firm B 15% Firm C 20% Firm D 20% Firm E 10%% Firm F 05%% Table 1 Observe Table 1 above. Assume that there are six firms in an industry each holding a market share as illustrated in Table 1 What would the Herfindahl-Hirschman Index (HHI) be for that industry for all six companies? Use the worksheet to show all your work then fill-in your answer in the space provided below. QUESTION 35 Use the information from Question #34 above. Suppose Firm B and Firm D were to merge. Determine what the new HHI for the industry would be. New HHI = QUESTION 36 What level of concentration would the market be after the merger based on your new HHI

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