Question
You are the manager in a market composed of 22 firms, each of which has a 4.54 percent market share. In addition, each firm has
You are the manager in a market composed of 22 firms, each of which has a 4.54 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors.
Instruction: Enter your responses rounded to the nearest penny (two decimal places).
a. Calculate the premerger Herfindahl-Hirschman index (HHI) for this market.
b. Suppose that any two of these firms merge. What is the postmerger HHI?
c. Based only on the information contained in this question and on the U.S. Department of JusticeHorizontal Merger Guidelinesdescribed in this chapter, do you think the Justice Department would attempt to block a merger between any two of the firms?
- It may but will also consider other factors.
- It likely will not.
- It likely will.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International Marketing
Authors: Philip R Cateora
14th Edition
0073380989, 9780073380988
