Imagine that, in the United States, two technology corporations decide to merge and generate a large new firm, which controls 37% of the technology market share. After the merger the Herfindahl- Hirschman Index of the technology sector reaches 2069. Do you think the Federal Trade Commission confirms this merger, given the FTC's historical standards for mergers? No, the FTC would probably challenge the merger. O Maybe. The FTC would scrutinize the merger and make a case-by-case decision.
Imagine that, in the United States, two technology corporations decide to merge and generate a large new firm, which controls 37% of the technology market share. After the merger the Herfindahl- Hirschman Index of the technology sector reaches 2069. Do you think the Federal Trade Commission confirms this merger, given the FTC's historical standards for mergers? No, the FTC would probably challenge the merger. O Maybe. The FTC would scrutinize the merger and make a case-by-case decision.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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
Transcribed Image Text:Question 3
Imagine that, in the United States, two technology corporations decide to merge and generate a large
new firm, which controls 37% of the technology market share. After the merger the Herfindahl-
Hirschman Index of the technology sector reaches 2069. Do you think the Federal Trade Commission
confirms this merger, given the FTC's historical standards for mergers?
No, the FTC would probably challenge the merger.
O Maybe. The FTC would scrutinize the merger and make a case-by-case decision.
Yes, the FTC would ignore the merger and allow it to go through.
No answer text provided.
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