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An Industry Is Made Up of 8 Firms with the Following

Question 16

Multiple Choice

An industry is made up of 8 firms with the following percent market shares: 29, 20, 11, 10, 9, 8, 7, 6. The firms with 8 and 7 percent market share are proposing to merge. What is the new Herfindahl-Hirschman index if the merger takes place?


A) 225
B) 1462
C) 1692
D) 1804

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