In determining whether a merger will affect competition, the Department of Justice considers a HHI value under 1,000 to be unconcentrated, and mergers within such a market are not considered to have adverse effects on concentration. Market Share 0% Assume that there are six rms in an industry each Firm B 15% holding a market share as illustrated in Table 1 to the right. What would the HHI be of that industry for all the companies? Show all your work in the space to the right. Suppose a merger were to occur between Firm A and Firm B, increasing the market share of one company, shrinking the total market to ve companies. In evaluating mergers, the US. Department ofJustice looks at the post-merger HHI values, which in the case of the widget makers would be. What would the HHI for that Scenario 2 { W01" '0 industry he now and haw might the Department of Justice react? Show all your work