1. If the industry sales shares of the top four publishers in Figure 26-5 remained unchanged, but the remaining firms merged to form a single company, would the four-firm concentration ratio change? Would the HHI change? Explain.
2. How would the prices that you pay for textbooks likely change if the textbook publishers in Figure 26-5 switched from behaving non-cooperatively to determining production and prices collusively? Explain your reasoning.