2. Suppose that in a small town, the market for cement had five companies with

market shares 0.3, 0.2, 0.2, 0.2, and 0.1. The following year, a new firm

entered but the leading firm increased its share. Now the shares are 0.5, 0.1,

0.1, 0.1, 0.1, and 0.1. Did the market become more competitive or less

competitive?