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There are 6 firms in a given industry, each with an equal market share. Suppose that 2 of the firms decide to merge. Calculate the pre- and post-merger Herfindahl-Hirschman Index, and evaluate the likelihood that the merger will be challenged on antitrust grounds. A. Pre-merger HHI = 1673; Post-merger HHI = 2224; Virtually certain. B. Pre-merger HHI = 1673; Post-merger HHI = 2224; Possible. C. Pre-merger HHI = 1673; Post-merger HHI = 2503; Virtually certain. |