Assume there are initially 10 firms each with a 10 percent


Question: Assume there are initially 10 firms, each with a 10 percent market share.

a. What is the initial HHI?

b. What will the HHI become if two firms merge?

c. What will the HHI become if three firms merge?

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Macroeconomics: Assume there are initially 10 firms each with a 10 percent
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