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Suppose the town of Springfield has three hospitals. Hospital A has a 30% market share, Hospital B has a 35% market share, and Hospital C has a 35% market share. Hospital A and B have proposed a merger. The government argues that the merger would constitute monopoly power, but the two hospitals disagree.

Provide a clear argument in favour of the hospitals’ position.

Provide a clear argument in favour of the antitrust position.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91232116

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