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7. In an industry that is monitored by the federal government for antitrust violations, there are nine competing firms, and their market shares (percent of

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7. In an industry that is monitored by the federal government for antitrust violations, there are nine competing firms, and their market shares (percent of industry sales that each captures) are: Firm R Firms Firm T Firm U Firm V 17% 17% 10% 8% 9% 6 Firm W Firm X Firm Y Firm Z 11 129 10 If the federal government agency responsible for monitoring and enforcing antitrust violations in this industry were to impose a benchmark for the Hertindahl-Hirschman Index (HHT) of 2.500, would that agency be likely to allow any proposed mergers in this industry to occur (assuming that the industry is indisputably defined) or would they subject any proposed merger deals in the industry to enhanced scrutiny? Please explain the reasoning behind your answer. (The HIIT for this industry is 1.228)

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