Company Market Share Toshiba 10% Dell 10% HP 15% Sony 10% Refer to the table above, which details laptop firms' market shares. Based on the Herfindahl Index (HHI) for the laptop market would the Justice Department allow a merger between Sony and Dell? Yes, because the HHI was below 1800 before the merger O No, because the HHI was below 1800 before the merger Yes, because the HHI was below 1800 before the merger and the HHI increases by more than 100 more than 100 No, because the HHI was below 1800 before the merger and the HHI increases

Company Market Share Toshiba 10% Dell 10% HP 15% Sony 10% Refer to the table above, which details laptop firms' market shares. Based on the Herfindahl Index (HHI) for the laptop market would the Justice Department allow a merger between Sony and Dell? Yes, because the HHI was below 1800 before the merger O No, because the HHI was below 1800 before the merger Yes, because the HHI was below 1800 before the merger and the HHI increases by more than 100 more than 100 No, because the HHI was below 1800 before the merger and the HHI increases

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Antitrust And Regulation

Section: Chapter Questions

Problem 9SQP

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Question

Company Market Share
Toshiba
10%
Dell
10%
HP
15%
Sony
10%
Refer to the table above, which details laptop firms' market shares. Based on the Herfindahl Index
(HHI) for the laptop market would the Justice Department allow a merger between Sony and Dell?
Yes, because the HHI was below 1800 before the merger
No, because the HHI was below 1800 before the merger
Yes, because the HHI was below 1800 before the merger and the HHI increases by more than 100
No, because the HHI was below 1800 before the merger and the HHI increases by more than 100

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