Calculation of Change in HHI Associated with a Merger Consider

question 21

Multiple Choice

Calculation of Change in HHI Associated with a Merger Consider a market that has three firms with the following market shares:
Firm A 25 percent
Firm B 55 percent
Firm C 20 percent
Suppose Firm A wants to acquire Firm C so that the post-acquisition market would exhibit the following shares:
A + C = 45 percent
B = 55 percent
What is the change in the HHI resulting from the merger?

• A)1,000
• B)4,050
• C)5,050
• D)No change

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Definitions:

Mononucleosis

A viral infection causing fever, sore throat, and swollen lymph glands, often spread by saliva.

Full PPE

Personal Protective Equipment that covers the body completely, providing a barrier against potentially infectious materials, typically including gloves, gowns, masks, and eye protection.

Precautions

Measures taken in advance to prevent something dangerous, unpleasant, or inconvenient from happening.

Allergic Response

An immune system reaction that occurs when the body's defense mechanisms overact to a normally harmless substance.