Look again at the section The Department of Justice and FTC Merger Guidelines, which begins on page
Question:
a. A market initially has 20 firms, each with a 5 percent market share. Of the firms, 4 propose to merge, leaving a total of 17 firms in the industry. Are the Department of Justice and the Federal Trade Commission likely to oppose the merger? Briefly explain.
b. A market initially has 5 firms, each with a 20 percent market share. Of the firms, 2 propose to merge, leaving a total of 4 firms in the industry. Are the Department of Justice and the Federal Trade Commission likely to oppose the merger? Briefly explain.
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a We need to calculate the Herfindahl Hirschman Index HHI Before the merger 20 5 2 500 Aft...View the full answer
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