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Calculate herfindahl-hirschman index before the merger


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Task: 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.

1. Calculate the four-firm concentration ratio (C4) before the merger.

2. Calculate the Herfindahl-Hirschman index (HHI) before the merger.

3. Calculate the four-firm concentration ratio (C4) after the merger.

4. Calculate the Herfindahl-Hirschman index (HHI) after the merger.

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Microeconomics: Calculate herfindahl-hirschman index before the merger
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