Consider a market with four firms. Suppose the first firm has a 39% market share, the second firm has a 30% market share, the third firm has a 20% market share, and the fourth firm has a 11% market share. Using the Herfindahl-Hirschman Index (HHI), what is this market's level of concentration?                                                                                    Now suppose the third and fourth firms propose to merge. Were they to merge, then the market's HHI would increase to?                 Given the increase in the HHI that would be caused by the proposed merger, would the government likely allow such a merger to occur?

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