Consider a country in which the airline industry consists of seven competitors. The largest operates 26% of flights, the next largest 19%, the next largest 14%, then there are three producers who each operate 12% of flights, and finally the smallest operates 5%. According to the U.S. Department of Justice, "[the agencies generally consider markets in which the HHI is between 1,500 and 2,500 points to be moderately concentrated, and consider markets in which the HHI is in excess of 2,500 points to be highly concentrated." a) Would a merger between the second and third largest producers change the DoJ's assessment of concentration in this industry? Show your work. b) Firms often argue that consumers will benefit from increased concentration; in the standard monopoly model, is it in theory possible for consumers to benefit from such a merger? What is that likely to require