1. Identify the type of anti-competitive behavior illustrated by each of the following: (also note the piece of legislation that declares this type of behavior as [potentially] illegal).
a. The same individual serves on the board of directors of GM & Ford.
b. Textbook publishers that bid on contracts collude to artificially inflate prices.
c. A large retailor sells its product below cost in an effort to drive out competition.
2. Calculate the Herfindahl-Hirschman (HHI) index for the for the following industry" a. Five firms with market shares of 60%; 15%; 10%; 10%; and 5% b. Using the HHI, in what case(s) would the Justice Department likely challenge a pending merger?