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Assume an industry is composed of the following eight firms

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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.

Reference no: EM13978268

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