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Homework answers / question archive /   You are the manager in a market composed of eight firms, each of which has a 12

  You are the manager in a market composed of eight firms, each of which has a 12

Accounting

 
You are the manager in a market composed of eight firms, each of which has a 12.5 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors
a) Calculate the premerger Herfindahl-Hirschman index (HHI) for this market. 
b) Suppose that any two of these firms merge. What is the postmerger HHI? 

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