The table below shows market share data for different firms producing desks. Market Share in % 15 18 7 11 6 10 4 5 5 16 Firm Aardvark Inc Baluga, LLC Cran Inc Delta Co Echo Co Farriss Co Gum Drop Inc Hill Corp Indigo Corp Jackson Co What is the Herfindahl Hirschman Index (HHI) for this market? HHI 225 324 49 121 36 100 16 25 25 256 Suppose that Delta Co and Gum Drop Inc are considering a merger. What will the HHI be after this merger?

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Chapter23: Managing Vertical Relationships
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The table below shows market share data for different firms producing desks.

| Firm         | Market Share in % | HHI  |
|--------------|-------------------|------|
| Aardvark Inc | 15                | 225  |
| Baluga, LLC  | 18                | 324  |
| Cran Inc     | 7                 | 49   |
| Delta Co     | 11                | 121  |
| Echo Co      | 6                 | 36   |
| Farriss Co   | 10                | 100  |
| Gum Drop Inc | 4                 | 16   |
| Hill Corp    | 5                 | 25   |
| Indigo Corp  | 5                 | 25   |
| Jackson Co   | 16                | 256  |

**What is the Herfindahl Hirschman Index (HHI) for this market?**

[Input box for answer]

**Suppose that Delta Co and Gum Drop Inc are considering a merger. What will the HHI be after this merger?**

[Input box for answer]
Transcribed Image Text:The table below shows market share data for different firms producing desks. | Firm | Market Share in % | HHI | |--------------|-------------------|------| | Aardvark Inc | 15 | 225 | | Baluga, LLC | 18 | 324 | | Cran Inc | 7 | 49 | | Delta Co | 11 | 121 | | Echo Co | 6 | 36 | | Farriss Co | 10 | 100 | | Gum Drop Inc | 4 | 16 | | Hill Corp | 5 | 25 | | Indigo Corp | 5 | 25 | | Jackson Co | 16 | 256 | **What is the Herfindahl Hirschman Index (HHI) for this market?** [Input box for answer] **Suppose that Delta Co and Gum Drop Inc are considering a merger. What will the HHI be after this merger?** [Input box for answer]
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