Four-wheel-drive tractors consisted of five firms

Assignment Help Business Economics

Reference no: EM131165358

a) Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,765. Case’s share of that market was 22 percent, while Fiat comprised just 12 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase?

(b) Based only on this information, is the Justice Department likely to challenge the merger according to the Horizontal Merger Guidelines?

1) No.

2) Yes.

3) Possibly - but other factors will be considered.

Reference no: EM131165358

Questions Cloud

Journalize the transactions : Burke Corporation was organized on January 1, 2014. It is authorized to issue 12,700 shares of 8%, $103 par value preferred stock, and 521,400 shares of no-par common stock with a stated value of $3 per share. Journalize the transactions. Post to t..

Small restaurant that specializes in serving local fruits : HomeGrown is a small restaurant that specializes in serving local fruits, vegetables and meats. The company has chosen to enter into a long-term relationship with Family Farms, a local farming operation. If HomeGrown’s lawyers charge $120 per hour, h..

Even-odd property of a function : How does differentiation and integration affect the even-odd property of a function? For integration, assume the constant of integration is 0.

Discuss importance of usability of designing a good website : Read the Article A Design Is Only As Deep As It Is Usable" By Louis Lazaris and discuss the importance of usability and suggest ways of designing a good website.

Four-wheel-drive tractors consisted of five firms : Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman inde..

Analyzes the basic legal social and economic environment : Assesses how the overall management teams perform in terms of the four functions of management. Identifies and explains the strong points of the managers. Identifies and explains areas in which improvements are needed.

Equation is linear or non-linear : How can you determine whether an equation is linear or non-linear?

Describe contemporary organisational structures : Describe contemporary organisational structures and explain contemporary people management practices.

About the financial crisis : California’s Proposition 13, enacted in 1978, limits the property tax on real estate to one percent of the market value when purchased, and a maximum annual increase in the tax amount of two percent. According to the Georgists, Prop 13 did not constr..

User Account

All Pages