Qustion: Suppose an industry is composed of eight firms with the following market shares:
A 30% E 8%
B 25 F 5
C 15 G 4
D 10 H 3
Based on the (revised 1997) merger guidelines, would the Anitrust Division likely challenge a proposed merger between
a. Firms C and D (assume the combined market share is 25 percent)?
b. Firms F and G (assume the combined market share is 9 percent)?
Explain your answer.