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Calculate the herfindahl index for the gertrude market area

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Question: The city of Gertrude is served by three banks, which recently reported deposits of $230 million, $180 million, and $65 million, respectively. Calculate the Herfindahl index for the Gertrude market area. If the second and third largest banks merge, what would the post merger Herfindahl index be? Under the Department of Justice guidelines discussed in the chapter, would the Justice Department be likely to challenge this merger?

Reference no: EM131723372

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