A market initially has 20 firms, each with a 5 percent market share. of the firms, 55 propose to merge, leaving a total of 1616 firms in the industry. are the department of justice and the federal trade commission likely to oppose the merger?

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Business

Lee Perez

6 May, 07:11

A market initially has 20 firms, each with a 5 percent market share. of the firms, 55 propose to merge, leaving a total of 1616 firms in the industry. are the department of justice and the federal trade commission likely to oppose the merger?

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Chaim Ferguson · Answer 1

The publishers would want to continue signing such contracts because this would allow them to keep prices higher. The figure to the right shows the result of firms in a competitive marketmerging to form a monopoly. Use thefigure to determine producer and consumer surplus beforethe merger and producer and consumer surplus after themerger. Assume that there are efficiency gains from the merger.