If the top two companies in the fast food industry merged, their new market share would equal 17% of the market. This industry's new HHI would be 845. According to the FTC's historical guidelines for mergers, would the FTC approve this merger? Select the correct answer below: Yes, the FTC would ignore the merger and allow it to go through. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. No, the FTC would probably challenge the merger Give step by step answer with final solution
If the top two companies in the fast food industry merged, their new market share would equal 17% of the market. This industry's new HHI would be 845. According to the FTC's historical guidelines for mergers, would the FTC approve this merger? Select the correct answer below: Yes, the FTC would ignore the merger and allow it to go through. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. No, the FTC would probably challenge the merger Give step by step answer with final solution
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
If the top two companies in the fast food industry merged, their new market share would equal
17% of the market. This industry's new HHI would be 845.
According to the FTC's historical guidelines for mergers, would the FTC approve this merger?
Select the correct answer below:
Yes, the FTC would ignore the merger and allow it to go through.
Maybe. The FTC would scrutinize the merger and make a case-by-case decision.
No, the FTC would probably challenge the merger
Give step by step answer with final solution
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