Question: The Justice Department has been asked to review a merger

The Justice Department has been asked to review a merger request for a market with the following four firms.
Firm Assets
A .......... $12 million
B .......... 25 million
C .......... 102 million
D .......... 3 million
a. What is the HHI for the existing market?
b. If Firm A acquires Firm D, what will be the impact on the market's level of concentration?
c. If Firm C acquires Firm D, what will be the impact on the market's level of concentration?
d. What is likely to be the Justice Department's response to the two merger applications?


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  • CreatedSeptember 23, 2014
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