Answer to Question #118671 in Microeconomics for catty nare

Question

Continue to assume that x = 5/4, but the market for long-distance telephone service remains perfectly competitive following the merger. For what values of s will the DOJ approve this merger

Answer 1

At value x=2 DOJ might consider approving this merger but will not for a value x<2. At x=2 the merger makes a public interest.