Suppose an industry is composed of seven producers with market shares given in the table that follows.Compute the Herfindahl-Hirschman index (HHI) for this market.If firms B and C were to merge, how would this affect the HHI? Instead, if firm A were to split into two equal-sized competing firms, how would this affect the HHI? Support your answers with specific calculations.Do your results make sense?
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