The most effective way to assess the impact of a potential merger on the market structure of an industry is to: A. calculate the n-firm concentration ratio. B. calculate the Hirfindahl-Hirschman Index. C. analyze barriers to entry.
The Hirfindahl-Hirschman Index is more sensitive to mergers than the n-firm concentration ratio. Although barriers to entry for an industry are important in assessing market structure, they are not necessarily related to the impact of a merger.
