Assignment 4.

• Suppose that a market consists of six firms with following

market shares.

Firm A = 25%,

Firm B = 20%, Firm C = 20%, Firm D = 15%,

Firm E = 10%, Firm F = 10%

(1) Calculate H index.

(2) If Firm D and Firm E are merged to become Firm D',

calculate post-merger H index.

(3) According to the Horizontal Merger Guideline of 2010, is

this merger categorized as white, gray, or black?