1. Imagine that 7 companies, A, B, C, D, E, F,G, constitute an industry with the following market shares: (1) 10% (A), (ii) 10% (B), (iii) 15% (C), (iv) 20% (D), (v) 15% (E), (vi) 25% (F), and (vii) 5% G.
(a) Estimate the industry HHI
(b) Suppose Companies A and F want to merge; how will the merger alter the Industry HHI? Under what conditions will the DOJ or FTC permit such a merger. NB: Refer to cases that are similarly situated to support your answers.