Exhibit 12-1
-Exhibit 12-1 shows the market shares of eight firms in an industry. Which of the following mergers would most likely be challenged by the U.S. Department of Justice?

Question

Exhibit 12-1 
-Exhibit 12-1 shows the market shares of eight firms in an industry. Which of the following mergers would most likely be challenged by the U.S. Department of Justice?

Quizplus · Accepted Answer

A merger between a firm with 50 percent market share and a firm with 10 percent market share is most likely to be challenged by the U.S. Department of Justice as this would create a dominant firm with 60 percent market share, which could lead to reduced competition and potential harm to consumers. Mergers between firms with lower market shares (choices A, B, and C) are less likely to be challenged as they would have a smaller impact on overall market concentration. There is no indication in the exhibit that suggests that any merger in this industry would be automatically challenged (choice E).

Exhibit 12-1 -Exhibit 12-1 Shows the Market Shares of Eight Firms in Eight