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A firm has four divisions' food, cookware, retail and credit services that generate revenues of $1.5 million, $3.8 million, $5.7 million, and $3.1 million, respectively. Compute the Herfindahl Index (HI) for the firm. The firm is also considering selling its credit services division. Assuming these two actions occur, what will the HI become? What is the HI if the sale of the credit division does not occur but the rival is acquired?
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