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What is the HHI for a market with 4 firms, each with one quarter of the market share?     1000     15000     2500     3000   Suppose there is a proposed merger between two of the firms in this market. The resulting market would be 3 firms, two with 25% of the market share and one with 50%. What would the new HHI be?     2950     3190     3700     3750   Is it likely that this merger will be challenged?     yes     no     not enough information to tell

What is the HHI for a market with 4 firms, each with one quarter of the market share?     1000     15000     2500     3000   Suppose there is a proposed merger between two of the firms in this market. The resulting market would be 3 firms, two with 25% of the market share and one with 50%. What would the new HHI be?     2950     3190     3700     3750   Is it likely that this merger will be challenged?     yes     no     not enough information to tell

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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  1. What is the HHI for a market with 4 firms, each with one quarter of the market share?
       
    1000
       
    15000
       
    2500
       
    3000

     

    1. Suppose there is a proposed merger between two of the firms in this market. The resulting market would be 3 firms, two with 25% of the market share and one with 50%. What would the new HHI be?
         
      2950
         
      3190
         
      3700
         
      3750

       

      1. Is it likely that this merger will be challenged?
           
        yes
           
        no
           
        not enough information to tell
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