Question 5 (2 points) Consider the market of oil market in a developing country. A recent energy research report identifies the largest private companies in this market for the year 2020. (a) Given this information, compute the concentration indexes that you consider adequate to characterize the level of concentration in the oil extraction sector. How do you classify the market in terms of concentration level? Explain. OXY and Grandtierra have been in conversations, and there are rumors on a possible Merger. Should the country authorities worry about the merge? Explain. You can assume that the developing country follow the Horizontal Merger Guidelines of the US. (b) Taking into account the information in the table, explain the relationship between level of concentration and firms' market power in these industries. Present the factors that explain this relationship. Question 5 (2 points) Consider the market of oil market in a developing country. A recent energy research report identifies the largest private companies in this market for the year 2020. (a) Given this information, compute the concentration indexes that you consider adequate to characterize the level of concentration in the oil extraction sector. How do you classify the market in terms of concentration level? Explain. OXY and Grandtierra have been in conversations, and there are rumors on a possible Merger. Should the country authorities worry about the merge? Explain. You can assume that the developing country follow the Horizontal Merger Guidelines of the US. (b) Taking into account the information in the table, explain the relationship between level of concentration and firms' market power in these industries. Present the factors that explain this relationship