If a firm with a 20 percent market share merges with a firm with 5 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares.
A)It rises by 100.
B)It rises by 200.
C)It falls by 100.
D)It falls by 200.
E)It rises by 25.

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The Answer of If a firm with a 20 percent market share merges with a firm with 5 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares.
A)It rises by 100.
B)It rises by 200.
C)It falls by 100.
D)It falls by 200.
E)It rises by 25.

If a Firm with a 20 Percent Market Share Merges