$$\begin{array}{l}
\begin{array} { l l r }
\text { Pool Sweeper } &\text { Output } &\text { Market share } \
\text { Producer }&\text { (Revenue) }&\text { (percent) }\
\hline \text { North Star } & \$ 20,000 &\_\_\_\_\_\
\text { Hurricane } & \$ 16,000 &\_\_\_\_\_\
\text { Blue Lagoon } & \$ 2,000 &\_\_\_\_\_\
\text { Clean Sweep } & \$ 2,000&\_\_\_\_\_\
\end{array}
\end{array}$$
Table 25.2 Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.The U.S.Justice Department would most likely
A) Allow a merger between North Star and Blue Lagoon.
B) Allow a merger between Hurricane and Blue Lagoon.
C) Allow a merger between Blue Lagoon and Clean Sweep.
D) Not allow any mergers among firms in this industry.

Question

$$\begin{array}{l}
\begin{array} { l l r } 
\text { Pool Sweeper } &\text { Output } &\text { Market share } \
\text { Producer }&\text { (Revenue) }&\text { (percent) }\
\hline \text { North Star } & \$ 20,000 &\_\_\_\_\_\
\text { Hurricane } & \$ 16,000 &\_\_\_\_\_\
\text { Blue Lagoon } & \$ 2,000 &\_\_\_\_\_\
\text { Clean Sweep } & \$ 2,000&\_\_\_\_\_\
\end{array}
\end{array}$$
Table 25.2 Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.The U.S.Justice Department would most likely
A) Allow a merger between North Star and Blue Lagoon.
B) Allow a merger between Hurricane and Blue Lagoon.
C) Allow a merger between Blue Lagoon and Clean Sweep.
D) Not allow any mergers among firms in this industry.

Quizplus · Accepted Answer

The U.S. Justice Department would most likely not allow any mergers among firms in this industry because the industry is already highly concentrated, with the top two firms accounting for over 70% of the market share. A merger between any two of the firms would further increase concentration and reduce competition, which could lead to higher prices and lower quality for consumers.

Table 252 Refer to Table 25