Consider a Market That Has Three Firms with the Following

question 105

Multiple Choice

Consider a market that has three firms with the following market shares:
Firm A 15 percent
Firm B 25 percent
Firm C 60 percent
Suppose Firm B wants to acquire Firm A so that the post-acquisition market would exhibit the following shares:
B + A = 40 percent
C = 60 percent
What is the change in the HHI resulting from the merger?

• A) 750
• B) 4,450
• C) 5,200
• D) No change

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Definitions:

Environmental Protection

The practice of safeguarding the natural environment through conservation and sustainable practices.

Negotiate An Agreement

The process of discussing and reaching a mutually acceptable arrangement or deal between parties with differing interests.

Ethnocentrism

Ethnocentrism is the act of judging another culture solely by the values and standards of one's own culture, often leading to prejudice and discrimination.

Effective Leadership

Leadership that achieves desired results, motivates followers, and addresses the needs of the group or organization in a proficient manner.