Problem 1: Problem 1: DOJ guidelines. The distance between State College and Pittsburgh is 150 miles. There is 1 gravel company in State College. And there is a gravel company every 30 miles between State College and Pittsburgh, for a total of 6 rms. The situation is pictured below. Firm 1 [in State College) Firm 2 Firm 3 Firm 4 Firm 5 Firm 6 [in Pittsburgh) .OOOOO) U 30 60 90 120 150 Dlstance The cost of producing a unit of gravel is 100 dollars, and the cost of shipping a unit of gravel is 10 cents per mile. Recall the DOJ guidelines: \"a market is a group of rms such that a hypothetical monopoly would be able able to raise prices by at least 10 per cent (compared to a price of 100 dollars)\". (a) What are the firms in the State College's market for gravel? (b) What is the HHI of the State College's market for gravel, assuming that all the rms in the market have equal share? (c) If the rms in the State College's market for gravel merge into two groups, resulting in two firms with equal market share, what would the resulting HHI be? ((1) Given the DOJ guideline for challenging a merger based on its anticompetitive effects, below, should the merger be challenged