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
|
7 percent
|
|
Firm F
|
6 percent
|
|
Firm G
|
4 percent
|
|
Firm H
|
3 percent
|
a. If Firms B and C propose a merge, would the Antitrust Division likely challenge the merger? Why or why not?
b. If firms G and H propose a merger, would the Antitrust Division likely challenge the merger? Why or why not?