In 1985 United Airlines purchased Pan Am's Pacific Division for $750 million. The Department of Justice opposed the purchase, but it was approved by the U.S. Department of Transportation. The percentages of total passengers carried across the Pacific by each airline in 1984 were as follows:

a. What was the concentration ratio before the purchase? Was it relatively high?
b. What was the concentration ratio after the purchase?

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Percentage 27.5 21.9 18.5 9.3 Percentage Firm Firm Northeast JAL Pan Am Korean Air United China Airlines Singapore Airlines Other 7.3 6.8 2.9 5.8