A5. Suppose that Anheuser-Busch and Miller-Coors explore a merger of the two companies.

Is this merger likely to be approved by the U.S. government? Explain your answer using the HHI concept.

Market shares in the U.S. brewery (beer-manufacturing) industry are as follows. Brewery Anheuser-Busch Miller-Coors Constellation Heineken Pabst 2000 small companies Total Market Share (Percent) 40 23 11 4 2 each about 0.01 100