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Consider an industry with 7 firms. The firms and their market shares are listed in the table below. Firms and Market Shares Firm Market Share

Consider an industry with 7 firms. The firms and their market shares are listed in the table below. Firms and Market Shares Firm Market Share A 26% B 24% C 20% D 10% E 8% F 6% G 6% You will also need the FTC guidelines for post-merger HHI to answer the next question: If the post-merger HHI is: Less than 1,500 The merger will be allowed. Between 1,500 and 2,500 The merger is unlikely to be challenged if it raised the HHI by less than 100. The merger might be challenged if it raised the HHI by more than 100. Greater than 2,500 The merger is unlikely to be challenged if it raised the HHI by less than 100. The merger might be challenged if it raised the HHI by between 100 and 200. The merger is likely to be challenged if it raised the HHI by more than 200. Suppose Firm D and Firm E have proposed a horizontal merger. If they are allowed to merge into one firm, what would be the post-merger HHI for this industry? [ Select ] Consider the market share information for the industry with 7 firms shown above, along with the FTC

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