Question

In: Economics

Do you think the Justice Department would block a merger between two firms in the cereal...

Do you think the Justice Department would block a merger between two firms in the cereal industry? Explain your answer.

Solutions

Expert Solution

There is a given chance that a merger between two firms between the cereal industry would not be blocked and this is because the industry is actually a competitive industry in nature where there are many number of companies doing the business as a result of which the merger between two companies might not increase the HHI more than 200 or it won't cross 2500 points it which it would be perfectly in the legal vicinity to allow the merger


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