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I have problem One plz help mein problem 2 The Justice Department has been asked to review a merger request for a market with the
I have problem One plz help mein problem 2
The Justice Department has been asked to review a merger request for a market with the following four firms. What is the HHI for the existing market? If Firm A acquires Firm D, what will be the impact on the market's level of concentration? If Firm C acquires Firm D, what will be the impact on the market's level of concentration? What is likely to be the Justice Department's response to the two merger applications? Consider a market that has three firms with the following market shares: Firm A = 35% Firm B = 41% Firm C = 24% Suppose Firm A wants to acquire firm C so that the post-acquisition market would exhibit the following shares: A + C = 76% B = 24% Calculate the pre-and post-merger HHI and the change in the HHI resulting from the merger. According to Department of Justice guidelines, is this merger likely to be challenged? Explain and substantiate your responseStep by Step Solution
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