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CFA Level I The Firm and Market Structures question

Economics / The Firm and Market Structures

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The Firm and Market Structures sample question

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Economics

The Firm and Market Structures

An industry has five firms with market shares of 30%, 25%, 20%, 15%, and 10%. The firms with 20% and 15% shares announce a merger that regulators expect to leave all market shares otherwise unchanged. Using whole-number percentage shares, the increase in the industry's Herfindahl-Hirschman Index caused by the merger is closest to:

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