What barriers to entry help maintain the industry structure

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Questions: Describes the merger attempts between Staples and Home Depot. After carefully reading the case study, use the material presented in Module 5 to discuss the nature and ramifications of the proposed merger. Do so by briefly answering the following questions. Note: Your discussion should not exceed one page written in 12-font, double-space.

a. What barriers to entry help maintain the industry structure?

b. If the merger were to be allowed, how would you characterize the merged firm's own price elasticity in a geographic market that contained only that firm? How would this change over time?

c. How is the Herfindahl-Hirschman Index (HHI) affected by the merger? Why does the case list a range, instead of an exact number? Are the HHI levels in the case indicative of high industry concentration?

Reference no: EM133401847

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