Cause the industry to be considered highly concentrated

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Reference no: EM13915408

A particular industry was initially segmented evenly among 20 firms (Phase 1). Five years later, the industry was still evenly segmented among competing firms, but there were now only 10 firms (Phase 2). Eventually 6 firms emerged with equal market share of the industry, but a move toward deregulation has prompted two of the firms to merge. What is the Herfindahl-Hirschman Index (HHI) for each of the three phases? Will the merger cause the industry to be considered “highly concentrated”?

Reference no: EM13915408

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