Suppose an Industry Is Composed of Seven Producers with Market

question 263

Essay

Suppose an industry is composed of seven producers with market shares given in the table that follows. Compute the Herfindahl-Hirschman index (HHI) for this market.
A) If firms B and C merge, how will this affect the HHI, all else equal?
B) Instead, if firm A splits into two equal-sized competing firms, how would this affect the HHI, all else equal?
Support your answers with specific calculations. Do your results make sense?

• A) If firms B and C merge, how will this affect the HHI, all else equal?
• B) Instead, if firm A splits into two equal-sized competing firms, how would this affect the HHI, all else equal? Support your answers with specific calculations. Do your results make sense?

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A sexual preference where an individual derives pleasure from experiencing pain or humiliation during sexual activity.

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An outdated term for someone who wears clothing traditionally or stereotypically worn by the opposite sex, typically for psychological fulfillment. (Note: Modern terminology favors "cross-dresser," recognizing the importance of respectful and non-pathologizing language.)

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A person's internal perception of their gender identity, which might not always align with the gender they were designated at birth.