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There is an industry with 5 firms. There is one large firm with 80% market share, three medium-sized firms with 6% market share, and one
- There is an industry with 5 firms. There is one large firm with 80% market share, three medium-sized firms with 6% market share, and one small firm with 2% market share. Calculate the Herfindahl-Hirschman Index (HHI) for this industry. Please show your work.
- Is this industry either highly concentrated, moderately concentrated, or not concentrated?
- There is an industry with 5 firms. There is one large firm with 80% market share, three medium-sized firms with 6% market share, and one small firm with 2% market share. Say the large firm merged with one of the medium-sized firms. By how much would this increase the industry's HHI? Please show your work.
- According to the guidelines, should the FTC either approve the merger, investigate the merger further, or challenge the merger?
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