4. The Herfindahl index and mergers Suppose that in the market for milk, market share is divided among six companies in the following manner: Firm Market Share Heartland Dairy 82% Bovine Valley 8% Milkcorp 4% Dairy-Quest 3% Pasteur Brand 2% encourage Moo Farms 1% challenge not challenge Based on the Herfindahl index of the market for milk, the FTC would a merger between Milkcorp and Dairy-Quest.

4. The Herfindahl index and mergers Suppose that in the market for milk, market share is divided among six companies in the following manner: Firm Market Share Heartland Dairy 82% Bovine Valley 8% Milkcorp 4% Dairy-Quest 3% Pasteur Brand 2% encourage Moo Farms 1% challenge not challenge Based on the Herfindahl index of the market for milk, the FTC would a merger between Milkcorp and Dairy-Quest.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Economic Regulation And Antitrust Policy

Section: Chapter Questions

Problem 4.7P

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