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Mergers and the Herfindahl-Hirschman Index (HHI)

12. Monopoly / Mergers and the Herfindahl-Hirschman Index (HHI) / Problem 6

Problem 6

An industry has firms with market shares of 50%, 30%, and 20%. Calculate the HHI.

A

3600

B

3800

C

3400

D

3200