Question

Assume an industry is composed of the following eight firms.
Company Market Share
Firm A ........... 30 percent
Firm B ........... 25 percent
Firm C ........... 15 percent
Firm D ........... 10 percent
Firm E ........... 7 percent
Firm F ........... 6 percent
Firm G ........... 4 percent
Firm H ........... 3 percent
HHI= sum of square of shares of all firms.
a. If Firms B and C propose a merge, would the Antitrust Division likely challenge the merger? Why or why not?
b. If firms G and H propose a merger, would the Antitrust Division likely challenge the merger? Why or why not? 1984the rise in HHI is only 24-no action is warranted.



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  • CreatedAugust 05, 2013
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