The recent merger of US Air with American Airlines received both national and local attention. The U.S. Department of Justice contested the merger on the basis that it would produce harmful monopoly-like behavior in many airline markets.

Conduct research and base your arguments on the economic principles discussed in module 2 and 3. Address the following topics:

1. Airline industry concentration ratios both before and after the merger.
2. A review of market structure vs. market behavior and the relevance of these concepts to this case