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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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