If a firm with a 20 percent market share merges with a firm with a 5 percent market share and the other firms have market shares of 40 percent, 15 percent, 10 percent, and 10 percent, respectively, the Herfindahl index will _____.
A) rise by 100
B) rise by 200
C) fall by 100
D) fall by 200
E) rise by 25
Correct Answer:
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