Suppose two companies attempt to merge, and they operate in an industry where the postmerger Herfindahl-Hirschman...

 

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Suppose two companies attempt to merge, and they operate in an industry where the postmerger Herfindahl-Hirschman index is 2,900 and the increase in the Herfindahl-Hirschman Iindex from the merger Is 225. Which of the following Is NOT a condition that would improve the likelihood of the Justice Department approving the merger? O The HHIS are based on too narrow a definition of the product market. O There is notable foreign competition. O One of the firms is in financial trouble. O There are significant economies of scale. O There are significant diseconomies of scope. Suppose two companies attempt to merge, and they operate in an industry where the postmerger Herfindahl-Hirschman index is 2,900 and the increase in the Herfindahl-Hirschman Iindex from the merger Is 225. Which of the following Is NOT a condition that would improve the likelihood of the Justice Department approving the merger? O The HHIS are based on too narrow a definition of the product market. O There is notable foreign competition. O One of the firms is in financial trouble. O There are significant economies of scale. O There are significant diseconomies of scope.

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Answer with explanation is given below There are significant ... View the full answer