15. Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the
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15. Nationwide Bank has approached Hometown Bank with a proposal to merge.
The following table lists the sales of the banks in the area. Use this information to calculate the four-firm concentration ratio and the Herfindahl-
Hirschman index. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, do you think the Justice Department is likely to challenge the proposed merger?
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