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What is the pre- and postmerger hhi

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Reference no: EM132383991

A market that has three firms with the following market shares:

Firm A=35%Firm B=41%Firm C=24%

Suppose Firm B wants to acquire Firm C so that the post-acquisition market would exhibit the following shares:

B + C = 65%

A = 35%

What is the pre- and postmerger HHI and the change in the HHI resulting from the merger?

Reference no: EM132383991

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