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Assume an industry is composed of the following eight firms Company Market Share Firm A 30 percent Firm

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.

May 15 2020 View more View Less

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