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Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $ 4 . 3 billion. Prior to the merger, the market

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 3,100. Case's share of that market was 20 percent, while Fiat compromised just 14 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase?

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