There are only five companies in the market. Company B and Company D are planning to merge. Market shares of all the competitors are shown in the table below. CompanyMarket share, %%A4040B2525C1414D1212E99Calculate the difference between the HHI value after the proposed merger and the initial value. Write the exact answer. Do not round.

The Herfindahl-Hirschman Index (HHI) is an index that measures the market concentration of an…

Answered: here are only five companies in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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There are only five companies in the market. Company B and Company D are planning to merge. Market shares of all the competitors are shown in the table below.

Company	Market share, %%
A	4040
B	2525
C	1414
D	1212
E	99

Calculate the difference between the HHI value after the proposed merger and the initial value. Write the exact answer. Do not round.

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