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The Justice Department has been asked to review a merger request for a market with the following four firms. Firm Assets A $23.75 million B

The Justice Department has been asked to review a merger request for a market with the following four firms.

Firm Assets
A $23.75 million
B 45.00 million
C 173.75 million
D 7.50 million

a. What is the HHI for the existing market? (Round your answer to 2 decimal places.)

HHI

b.

If Firm A acquires Firm D, what will be the impact on the markets level of concentration? (Round your answer to 2 decimal places.)

HHI

c.

If Firm C acquires Firm D, what will be the impact on the markets level of concentration? (Round your answer to 2 decimal places.)

HHI

d-1. Would the merger of firm's A and D be approved or challenge by the Department of Justice.
multiple choice 1

Challenges the merger

Approves the merger

d-2. Would the merger of firm's C and D be approved or challenge by the Department of Justice.
multiple choice 2

Approves the merger

Challenges the merger

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