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can someone help with this? In 1986, Pepsi announced its intention to buy 7-Up, and Coca-cola proposed buying Dr Pepper. The table below shows the

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In 1986, Pepsi announced its intention to buy 7-Up, and Coca-cola proposed buying Dr Pepper. The table below shows the market shares held by the soft-drink firms in 1986. Assume that the remaining 15% of the market is composed of 15 firms, each with a market share of 1%. Company Market share (percent) Coca-Cola 39 PepsiCo 28 Dr Pepper 7 7-Up 6 1. Calculate the Herfindahl-Hirschman Index (HHI) for the industry as it was structured in 1986. 2. Calculate the postmerger HHI if only PepsiCo had bought 7-Up. 3. Calculate the postmerger HHI if only Coca-cola had bought Dr Pepper. 4. How would you expect the Justice Department to respond to each merger considered separately? To both? (By the way, the proposed mergers were challenged, and neither was completed.)

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