Problem
In the 1990s, the infant/preschool toy market four-firm concentration ratio was 72 percent. With 8 percent of the market, Mattel was the fourth largest firm in that market. Mattel proposed to buy Fisher-Price, the market leader with 27 percent.
a. Why would Mattel want to buy Fisher-Price?
b. What arguments can you think of in favor of allowing this acquisition?
c. What arguments can you think of against allowing this acquisition?
d. How do you think the four-firm concentration ratio for the entire toy industry would compare to this infant/ preschool toy market concentration ratio?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.