Three firms produce canned tuna, Bumble Bee 33% market share, Chicken of the Sea 20% market share and Starkist 30% market share. Private labels make up the remainder of the market 17 percent market share.

What is the HHI index for this industry? calculate and explain. Is there concern with respect to antitrust activity?

In a competitive market, the expected price of a 6oz can of tuna is $1. What price would be expected if the three firms fixed prices to collude together to operate as a monopolist. [Suppose that the price elasticity of demand for Tuna is -3.]. calculate and explain.