Compute the Herfindahl-Hirschman Index (HHI) market concentration rules that guide mergers between companies to prevent monopoly creation and to promote competition among firms. The merger of which companies will be highly concentrated? What ethical rules will be affected based on U.S. antitrust laws and merger guidelines in regard to a highly concentrated market? Is Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companies listed in the table based on U.S. merger guidelines and antitrust laws? Explain Does this market have barriers to entry? If yes, what might be the market barriers?

Company Market Share Coca-Cola 35% Pepsi-Co 30% Cadbury Schweppes 25% Other 10%