Widget manufacturing is a capital-intensive industry that requires construction of large, expensive manufacturing plants. The plants are subject to strict environmental and safety regulations and frequently take several years to build, from the start of construction to the beginning of widget production. All widgets consumed in the United State are manufactured in the United States, there are no imports into the country. The U.S. widget manufacturing market consists of ten firms, each with approximately the same market share. The widget industry tends to feature a fair amount of tacit coordination. Swift Widgets is typically the first-mover in the industry when it comes to raising prices. When Swit nnounces a price increase the other firms generally follow suit. The one exception is Kelce Widgets, which frequently declines to raise its own price in response to a Swift rice increase. Widgets are relatively undifferentiated products and customers tend to be price sensitive, so Kelce's reluctance to increase price has a downward effect on ndustry prices overall, and has resulted in Kelce gaining market share at the expense of the other firms in the industry. Despite its past success in capturing sales from its competitors, Kelce Widgets has been struggling financially. It recently had a fire at its largest manufacturing plant which as hindered its ability to fulfill contracts. It has been forced to shift more manufacturing to smaller, less efficient plants, resulting in its costs going up and its sales declinings is worried that without a capital infusion to help it recover from the manufacturing plant fire, its market share will decline substantially. wift Widgets is looking for ways to increase its revenue, and it thinks a merger with Kelce Widgets might be just the ticket. It believes that acquiring Kelce will increase its market share, increase its sales, and allow it to achieve some cost-saving efficiencies by combining and streamlining the two firms' operations. Swift also has the capital to elp Kelce repair its manufacturing plant following the recent fire. the general counsel of Swift Widgets, Travis Taylor, has reached out to you for your advice on what antitrust issues might arise should the two firms attempt to merge. He m hard that the US, antitrust enforcement agencies have issued draft "Merger Guidelines." He would like to understand what issues might arise under those Guidelines, as well as under federal court cases addressing mergers, if the Federal Trade Commission (which has jurisdiction over widget mergers) should investigate the proposed mergem e has a number of specific questions he would like your advice on. r. Taylor is a big believer that "time is money and he demands short, succinct answers from his attorneys. He insists that you answer each question in 100 words or fewer. He ll stop reading after 100 words and will not consider anything that comes after. So if you want him to consider your advice, keep it short. Jestion 1: What is the concentration level of the US, widget market? What presumptions, if any, might arise under the draft Merger Guidelines based on pre-merger and st-merger concentration levels?