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Bethlehem and Youngstown, two majo r steel producers, accounted for about 21 percent of the national steel market in the late 1950s, when they proposed to merge.

a. Should the two steel companies have been allowed to merge? Why or why not?
b. According to the companies, Bethlehem sold most of its output in the East, whereas Youngstown sold most of its output in the Midwest. Was this fact relevant? Why or why not?
c. The district court d id not allow Bethlehem and Youngstown to merge. Yet in 1985 (as we saw in problem I), the Department of Transporta tion PROBLEMS allowed United Airlines (with about 7 percent of the service between Japan and the U.S. mainland) to acqu ire Pan Am's Pacifi c Division (with about 19 percent). How can you expla in this?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M947128

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