One industry has four firms and their market shares are as follows: C1: 40% C2: 30%...

 

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One industry has four firms and their market shares are as follows: C1: 40% C2: 30% C3: 19% C4: 11% The Herfindahl-Hirschman index (HHI) of this industry is If C2 and C4 merge, the new HHI of this industry will be If one can justify expanding the definition of the industry to include more firms and these firms are about the similar size as C1, C2, C3, C4 here, then HHI can be smaller. (True/False) One industry has four firms and their market shares are as follows: C1: 40% C2: 30% C3: 19% C4: 11% The Herfindahl-Hirschman index (HHI) of this industry is If C2 and C4 merge, the new HHI of this industry will be If one can justify expanding the definition of the industry to include more firms and these firms are about the similar size as C1, C2, C3, C4 here, then HHI can be smaller. (True/False)