When Mattel proposed acquiring Fisher-Price, the infant/preschool toy market four-firm concentration ratio was 72 percent. With 8 percent of the market, Mattel was the fourth-largest firm in that market. Mattel proposed to buy Fisher-Price, the market leader with 27 percent. (minimum 250 words)
A. Why would Mattel want to buy Fisher-Price?
B. What arguments can you think of in favor of allowing this acquisition?
C. What arguments can you think of against allowing this acquisition?
D. How do you think the four-firm concentration ratio for the entire toy industry would compare to this infant/preschool toy market concentration ratio?