Firm Market share (percent) Kodiak Film 15 Kia Film 13 Cavalier Film 13 Koss Fil

Question

Firm
Market share
(percent)
Kodiak Film
15
Kia Film
13
Cavalier Film
13
Koss Film
12
Solow Film
11
Phil's Film
10
Rolo Film
9
Canister Film
8
Color Bright Film
6
Magenta Film
3

Suppose there are 9 firms in the photographic film industry with corresponding market shares as given in the table above. Under present merger guidelines with respect to industry HHI and the change in HHI resulting from a merger, which of the following proposedmergers would NOT be challenged by the Federal Trade Commission?
A) a merger between Rolo Film and Canister Film
B) a merger between Phil's Film and Magenta Film
C) a merger between Koss Film and Color Bright Film
D) a merger between Kia Film and Solow film

Explanation / Answer

a merger between Phil's Film and Magenta Film is the right choice

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