Answers
1. answer is A
first two firms have ties so they have market share = 38 % and 38%
other three firms have 8%, 8%, 8%. but one of them come down by 4% so we only take higher sales percentage of first 4 firms so
(38+38+8+8) = 92%
2.answer is C
first two firms have ties so they have market share = 38 % and 38%
other two firms have 8%, 8%.. but one of out of three firm come down by 4% and new firms also captures 4% market shares. so all firm have percentage as follows and HHI will be:
| 1 | $ 38.00 | 1444.00 |
| 2 | $ 38.00 | 1444.00 |
| 3 | $ 8.00 | 64.00 |
| 4 | $ 8.00 | 64.00 |
| 5 | $ 4.00 | 16.00 |
| 6 | $ 4.00 | 16.00 |
| 3048.00 |
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