Firm X has three divisions that generate revenues of $1.3 billion, $2.5 billion, and $5.2 billion. Firm

Question:

Firm X has three divisions that generate revenues of $1.3 billion, $2.5 billion, and $5.2 billion. Firm Y is a competitor with three associated divisions that generate $2 billion each. Using a Herfindahl Index to measure focus, determine if both Firm X and Firm Y shareholders would see a merger as an action that would increase or rather decrease focus.