6. Under what conditions might the Justice Department approve a merger between two companies that operate in an industry with a premerger Herfindahl- Hirschman index of 2,900 if the postmerger index is expected to increase by 225?
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- 8.In 2019, competition authorities threw out a merger of Asda and Sainsbury’s. What type of growth would the merger of Asda and Sainsbury’s have represented? a) Horizontal expansion b) Horizontal integration c) Conglomerate merger d) Vertical integration e) Horizontal allianceSuppose an industry is composed of eight firms with the following market shares:A 30% E 8%B 25 F 5C 15 G 4D 10 H 3Based on the (revised 2010) merger guidelines, would the Antitrust Division likely challenge a proposed merger betweena. Firms C and D (assume the combined market share is 25 percent)?b. Firms F and G (assume the combined market share is 9 percent)? Explain your answer.Firms Industry 1 Industry 2 Industry 3 Industry 4 1 65 70 35 50 2 15 15 35 50 10 10 30 4 Based on the Herfindahl-Hirschman index for each of the industries above, the industry with the most concentration of market power is: Industry 1 Industry 2 Industry 3 Industry 4
- An industry has the following market shares: 30% 20% 10% 5% What is the Pre-merger index? What is the post-merger index? What is the increase or decrease in the index after the merger? Should a merger between the 1st and 3rd largest firms be allowed based on the Herfindhal Index? Why or why not38. The manufacture of Prolene is an industry that offers such large production economies of scale that single-firm production of the product is the most efficient industry structure. This industry can, therefore, be described as a pure monopoly an actual monopoly a government franchise monopoly a natural monopoly 40. In relation to the accountability of directors under the UK Corporate Governance Code, which of the following statements is true? The board should conduct a review of the effectiveness of the company's internal control systems at least annually, and of its risk management systems every two years The board should conduct a review of the effectiveness of both the company's risk management systems and its internal control systems every two years The board should conduct a review of the effectiveness of the company's risk management systems at least annually, and of its internal control systems every two years The board should conduct a review of the effectiveness of both…Merger of beer giants faces obstacles Mega-brand beers have lost market share to wine and craft beer. In response, Anheuser-Busch InBev and SABMiller, the two biggest brewers in the world, are discussing a merger that would be scrutinized by antitrust regulators. Source: The New York Times, September 16, 2015 How would a merger benefit the two big brewers? Under what circumstances would the Federal Trade Commission (FTC) challenge the merger? A merger would benefit the two big brewers because O A. the price of beer would fall close to the price in a perfectly competitive market and sales would increase O B. average total cost would increase but price would increase by more than average total cost O C. the price of beer could rise close to the monopoly price and economic profit would increase O D. many craft brewers would be forced out of the market The Federal Trade Commission would challenge the merger if O A. it increases the HHI O B. the HHI is less than 1,500 O C. the HHI is…
- The table below shows revenue data for different firms producing refrigerators. Use the given information to find the market share of each firm. The "other" row is comprised of a number of small firms. Round each value to 2 decimal points. SI Firm % Acme Co Baluga, LLC Cran Inc Delta Co Eagle Inc Fox Inc What is the Four Firm Concentration Ratio? Other Revenue in $ 245.00 595.00 105.00 170.00 725.00 515.00 990.00 Market Share in % ← A - ← A ←Suppose that the most popular car dealer in your area sells 25 percent of all vehicles. Instructions: Enter your answers as a whole number. a. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area? b. In that same situation, what would the four-firm concentration ratio be? percentG The formula t xC Where Does X b My Questions X BC Broward C cmillanlearning.com/sac/5078081#/5078081/12/-1 Completed 16 out of 20 Question 13 of 20 > Which of these will contribute to a cartel's stability? O a copyright Obrand differentiation O ease of entry into an industry O having few members with similar goals Rain 五0
- Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 26 percent, 24 percent, 20 percent, 12 percent, 9 percent, 6 percent, and 3 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? Book percent Print b. What is the Herfindahl index for the hamburger industry in this town? erences c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = percent Herfindahl index =6. Given the market shares below, calculate the Herfindah-Hirschman Index (HHI). Would the Federal Trade Commission approve a merger between GM and Ford? Company Market Share (in Percent) GM 21 Ford 19 Toyota 16 Chrysler 13 Nissan 9 Hyundai 7 Kia 6 Subaru 5 Volkswagen 4The table below shows revenue data for different firms producing airplanes. Use the given information to determine the 4 Firm Concentration ratio. What is the Four Firm Concentration Ratio? % Is this market concentrated? OYes ONO Firm Acme Co Buzzy Co Cran Inc Dingo Inc Echo Co Farriss Co Revenue in $ Market Share in % 11 16 14 20 21 18 350 530 440 655 675 595