Question 29 3 pts The table shows an industry with 12 firms and the market share

Question

Question 29 3 pts The table shows an industry with 12 firms and the market share (percentage) owned by each firm. Enter a number only. Do NOT put in dollar signs, commas, decimals or units. Firm Percentage of total sales A 16 B 14 C 12 D 12 E 10 Calculate the HHI for this industry Question 30 3 pts If firms F and G decide to merge, what would the new HHI be? Question 31 3 pts If firms C and D decide to merge, what would the new HHI be? (don't assume that firms F and G have merged from the previous question). The new HHI after fimsC and D merge is

Explanation / Answer

Q. 29. HHI is 1042

Firms

Market share

Squaring market share

A

16

256

B

14

196

C

12

144

D

12

144

E

10

100

F

8

64

G

6

36

H

6

36

I

5

25

J

4

16

K

4

16

L

3

9

HHI

1042

Q.30 The new HHI is 1138

Firms

Market share

Squaring market share

A

16

256

B

14

196

C

12

144

D

12

144

E

10

100

F and G

14

196

H

6

36

I

5

25

J

4

16

K

4

16

L

3

9

HHI

1138

Q.31 the new HHI is 1330

Firms

Market share

Squaring market share

A

16

256

B

14

196

C and D

24

576

E

10

100

F

8

64

G

6

36

H

6

36

I

5

25

J

4

16

K

4

16

L

3

9

HHI

1330

Q.32 Option 3 as the post merger HHI is 1330 which is under moderately concentrated competition

Q.33. Option 4

Q.34. Option 4, as the competition is between few firms in oligopoly

Q.35. Option 3

Q.36. Option 2

Q.37. Option 3

Q.38. Option 1

Firms

Market share

Squaring market share

A

16

256

B

14

196

C

12

144

D

12

144

E

10

100

F

8

64

G

6

36

H

6

36

I

5

25

J

4

16

K

4

16

L

3

9

HHI

1042

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