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

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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 .......... $156 million
B ..........   130 million
C ..........     45 million
D ..........  100 million
a. What is the HHI for the existing market?
b. If Firm B acquires Firm D, what will be the impact on the market's level of concentration?
c. If Firm C acquires Firm D, what will be the impact on the market's level of concentration?
d. What is likely to be the Justice Department's response to the two merger applications?
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Related Book For  book-img-for-question

Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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