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Pls help with this question! In 2001, HP acquired Compaq. Pre-Merger Market Shares The merger had an impact on two Desktop PC different markets: desktop

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In 2001, HP acquired Compaq. Pre-Merger Market Shares The merger had an impact on two Desktop PC different markets: desktop PCs Dell Compaq HP IBM Market Gateway and servers. 13 12 6 4 The pre-merger market shares in Server Market IBM Compaq HP Dell each market are given in the 26 16 14 7 accompanying table. (a) Determine the value of HHI in each market before the merger. Post-merger, the market shares of each firm remains the same and the market share of the merged firm is a simple sum of old shares. (b) Calculate the post-merger HHI in each market. In the US, the Department of Justice (DoJ) has merger guidelines based on the HHI. As a rule of thumb, mergers that lead to an HHI of 1000 or less ordinarily lead to no further scrutiny; those that raise the HHI by 100 or more and produce a post-merger HHI between 1000 and 1800 raise significant questions; and those that raise the HHI by 50 or more and produce a post-merger HHI above 1800 raise significant concern. (c) Considering the values determined above and the DoJ merger guidelines, was the Department of Justice right in allowing the merger take place? Or did the case deserve significant scrutiny? Explain why or why not

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