Firm Market Share (%)
A 20
B 20
C 20
D 20
E 10
F 10
Suppose tha...
Firm Market Share (%)
A 20
B 20
C 20
D 20
E 10
F 10
Suppose that firms A and F in this table merged into a single firm. The four-firm concentration ratio and the Herfindahl index would be:.
a. Both rise
b. Rise and remain unchanged, respectively.
c. Both fall.
d. Remain unchanged and rise, respectively.
Answers: 3
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