Antitrust division likely challenge the merger


Please assist answer the following problem.

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

1. If Firms B and C propose a merge, would the Antitrust Division likely challenge the merger? Why or why not?

2. If firms G and H propose a merger, would the Antitrust Division likely challenge the merger? Why or why not?

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Microeconomics: Antitrust division likely challenge the merger
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