Q. Assume an industry is composed of the following eight firms.
Company Market Share
Firm A 30 percent
Firm B 25 percent
Firm C 15 percent
Firm D 10 percent
Firm E 8 percent
Firm F 5 percent
Firm G 4 percent
Firm H 3 percent
Based on the revised (1997) merger guidelines, would the Antitrust Division likely challenge a proposed merger between:
a. Firms C and D (assume the combined market share is 25%)?
b. Firms F and G (assume the combined market share is 9%)?