An industry consists of 5 firms, with sales of $100,000, $500,000, $400,000, $300,000, and $200,000. Now, suppose the largest and smallest firms merge.
-Calculate the four-firm concentration ratio (C4) before the merger.
-Calculate the Herfindahl-Hirschman index (HHI) before the merger.
-Calculate the four-firm concentration ratio (C4) after the merger.
-Calculate the Herfindahl-Hirschman index (HHI) after the merger.