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Homework answers / question archive / Carrier 2011 2019 Oligopoly - End of Chapter Problem In 2011, the Justice Department rejected AT&T's proposal to purchase T-Mobile for $39 billion due to anti-competitive concerns

Carrier 2011 2019 Oligopoly - End of Chapter Problem In 2011, the Justice Department rejected AT&T's proposal to purchase T-Mobile for $39 billion due to anti-competitive concerns

Economics

Carrier 2011 2019 Oligopoly - End of Chapter Problem In 2011, the Justice Department rejected AT&T's proposal to purchase T-Mobile for $39 billion due to anti-competitive concerns. A few years later, Sprint launched its own attempt to purchase T- Mobile. In early 2020, Sprint and T- mobile finalized their merger agreement. Verizon 34% 29% AT&T 32 40 Sprint 17 13 a. Use the accompanying table to calculate the HHI before and after the proposed 2011 merger of AT&T and T-Mobile. T-Mobile 10 16 HHI pre-merger: 2618 HHI post-merger: 3298 Incorrect Incorrect b. Use the table to calculate the HHI of the industry in 2019 and then estimate the HHI for the post Sprint and T-mobile merger. HHI pre-merger: 2870 HHI post-merger: 3286 Incorrect Incorrect

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