Supposethe following are the approximate U.S. market shares of the 4 largest cable television companies: Comcast, 20 percent;Time Warner, 10 percent; Cox, 5 percent; Charter, 5 percent.Assume "all other brands" each have less than a one-percent share.

1. Compute the Herfindahl Index, showing how you arrived at this number.
2. Suppose thatComcast were to acquire Time Warner. Compute the post-merger Herfindahl Index, showing how you arrived at this number.
3. Would federal antitrust agencies be likely to become concerned to see a Herfindahl increase of the magnitude you computed as [(2) - (1)], as well as the projected SSNIP, and challenge the merger? Explain why or why not.