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Consider an industry with 7 firms whose market shares are given in the following frequency:
market share 7%, number of firms 212% (2 firms), 16% (2 firms), 30% (1 firm)
a) Calculate the HHI for the industry! HHI=___
b) Suppose one of the firms with a 12% market share announces that it plans to buy one of the firms with a 7% market share. Calculate the post-merger HHI.
c) SUppose the 2 firms with a 7% market share announce plans to merge together. CPost merger HHI=_____
d) Suppose the firm with 30% market share announces plans to buy one of the firms with 12% market share. Post merger HHI=___
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