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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
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?
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