Company Market Share Toshiba 10% Dell 10% HP 15% Sony 10% Refer to the table above, which details laptop firms' market shares. Based on the Herfindahl Index (HHI) for the laptop market would the Justice Department allow a merger between Sony and Dell? Yes, because the HHI was below 1800 before the merger O No, because the HHI was below 1800 before the merger Yes, because the HHI was below 1800 before the merger and the HHI increases by more than 100 more than 100 No, because the HHI was below 1800 before the merger and the HHI increases

Company Market Share Toshiba 10% Dell 10% HP 15% Sony 10% Refer to the table above, which details laptop firms' market shares. Based on the Herfindahl Index (HHI) for the laptop market would the Justice Department allow a merger between Sony and Dell? Yes, because the HHI was below 1800 before the merger O No, because the HHI was below 1800 before the merger Yes, because the HHI was below 1800 before the merger and the HHI increases by more than 100 more than 100 No, because the HHI was below 1800 before the merger and the HHI increases

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 2E

See similar textbooks

Related questions

Q: Which of the following hypothetical monopoly firms is least likely to be broken up under anti-trust…

A: A monopoly is a market structure where there are only one seller and many buyers. The seller has…

Q: The following table represents a monopoly's total cost and total revenue at different output levels.…

A: Marginal cost refers to an additional from producing one more unit of output.

Q: A monopolistic competitor has the following information about cost and demand. Quantity Price ($)…

A: Since you have posted multiple questions, we will provide the solution to only the first question as…

Q: Consider the firm Novo Nordisk and the production of Ozempic, a class of diabetes drugs which can…

Q: Dollars ● MR g Output hj D MC ATC The diagram above shows kinked demand and marginal revenue curves…

A: A kinked demand curve shows the interdependent behaviour of firms in an oligopoly market structure.

Q: Let's assume that the biggest two firms in the video game sector merged and that the market share of…

A: The FTC, Federal Trade Commission is a government agency with the responsibility of protecting…

Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger…

A: Four-firm concentration ratio ( FF) , also called concentration ratio , is a way to measure the…

Q: An industry consists of two identical firms with total costs of TC=5q+0.5q^2. Market demand is given…

A: Given, the demand curve is P = 125 - Q and the marginal revenue curve is MR = 125 - 2Q. Profit…

Q: 4. Imagine a market with demand P = 420 – Q in each period. Two firms are thinking about colluding.…

A: The marginal revenue curve shows the change in total revenue resulting from selling one extra unit…

Q: An industry consists of three firms with sales of $205.000, $745.000, and $305,000. a. Calculate the…

A: In order to evaluate the level of market competition, the Herfindahl-Hirschman Index (HHI), a…

Q: (a) There are two companies in the world that produce large passenger aircraft, Boeing, and Airbus.…

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: How to see elasticity from the demand and supply function? Will this work in a monopoly/oligopoly?…

A: In a linear demand function like MWTP = 490 - 0.25Q, the price elasticity of demand is not constant…

Q: Assume two gas stations, Speedy Gas and Quick Fuel, control the market for gasoline at a certain…

A: In Cournot duopoly two firms compete in quantity to maximize profit.

Q: The Herfindahl-index (HHI) is empty and obscure, giving little clear basis for assessing the degree…

A: In a market, different type sof analysis are made to know the features and functioning of a market.

Q: Answer the following questions, which relate to measures of concentration: a. What is the meaning of…

A: In economics concentration ratios are used to measure the concentration of the market and these…

Q: Price $9 MC D. 500 700 900 Quantity Five firms in an industry have equal and constant marginal costs…

A: Given information There are 5 firms MC=5 which is constant for each firm. All 5 firms makes cartel.…

Q: Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other…

A: The Hefindahl Hirschman index (HHI) is the measure of market concentration. The value of HHI index…

Q: 35. Use Table 11.5 to calculate the four-firm concentration ratio for the U.S. auto market. Does…

A: A monopoly occurs when one firm has a dominant position in an industry or area to the point where…

Q: Which of these will contribute to a cartel's stability? O a copyright brand differentiation ease of…

A: In a market, a cartel refers to the situation when market participants try to maximize the overall…

Question

Company Market Share
Toshiba
10%
Dell
10%
HP
15%
Sony
10%
Refer to the table above, which details laptop firms' market shares. Based on the Herfindahl Index
(HHI) for the laptop market would the Justice Department allow a merger between Sony and Dell?
Yes, because the HHI was below 1800 before the merger
No, because the HHI was below 1800 before the merger
Yes, because the HHI was below 1800 before the merger and the HHI increases by more than 100
No, because the HHI was below 1800 before the merger and the HHI increases by more than 100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

PRICE (Dollars per can) 2.00 1.80 1.60 Demand 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0 0 MC = ATC MR 90 180 270 360 450 540 630 720 810 900 QUANTITY (Cans of beer) Monopoly Outcome $0.80 per can. Given this When they act as a profit-maximizing cartel, each company will produce 180 cans and charge information, each firm earns a daily profit of $144.00, so the daily total industry profit in the beer market is $288.00. Oligopolists often behave noncooperatively and act in their own self-interest even though this decreases total profit in the market. Again, assume the two companies form a cartel and decide to work together. Both firms initially agree to produce half the quantity that maximizes total industry profit. Now, suppose that Stargell decides to break the collusion and increase its output by 50%, while Schmidt continues to produce the amount set under the collusive agreement. Stargell's deviation from the collusive agreement causes the price of a can of beer to now $ , while Schmidt's…
Use the following table to calculate the Herfindal-Hirshman Index for the U.S. auto market. Would the FTC approve a merger between Gm and Ford? Explain your response. The table is......... GM 19% Ford 17% Toyota 14% Chrysler 11%
New Tab https://assets.open... Home-Oxnard Uni... Please, look at the graph below. What is the profit-maximizing price this monopolist will charge for their newest product? $2,000 Check-In C Sign in to My CLIC... 51.800 $1,600 Dollars $1,400 $1,200 $1,000 5800 $600 $400 $200 50 O $600 O $400 O $800 O $1200 96 5 2.5M 9 * ASMA Quantity 3413 2-3573 MR 2 /мс SOD AC Demand PreCalculus Expe
3. Based on the best available econometric estimates, the market elasticity of demandfor your firm’s product is -2. The marginal cost of producing your product is constant at $50. a. What is your optimal per unit price if you are a monopolist?b. What is your optimal per unit price if you compete against one other firm in a Cournotoligopoly? What is your optimal per unit price if you compete against 20 other firms in aCournot oligopoly?c. What price pattern are you seeing between parts a and b? Explain why this makes intuitivesense (hint: at what price will you eventually sell your product if the number of firmscontinues to increase?).d. Suppose once again you are a monopolist, but your product sells to two different groups ofconsumers segmented by region. The east coast customers have demand elasticity equal towhat is shown above (-2) and your west coast customers have demand elasticity equal to -4.Determine the optimal prices under third-degree price discrimination. What conditions…
The table below shows revenue data for different firms producing frying pans. Use the given information to find the market share and squared value of the market share for each firm. Round each market share value before further calculations (no decimals). Firm - Acme Co Baluga, LLC Corky Co Dingo Inc Echo Co Fox Inc Revenue in $ 170.00 230.00 270.00 250.00 210.00 250.00 Market Share What is the Herfindahl Hirschman Index (HHI) for this market? A A - - A Market share squared ← A A A A
can you please answer 16-18 please and thank you
Let's assume that the biggest two firms in the video game sector merged and that the market share of the new firm representing the two merged firms is equal to 39% of the market. Let's assume that after merger HHI of the video game industry is 2071. Based on the Federal Trade Commission's historical standards for mergers, would the Federal Trade Commission certify this merger? No, the FTC would probably challenge the merger. No answer text provided. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. Yes, the FTC would ignore the merger and allow it to go through.
Question 16 Monopolistic Competition -- Questions 16-20 refer to Figure 6-2 below. This figure depicts a situation in a monopolistically competitive market. Figure 6-2 105 100- MC 95 90+ ATC 70 65 60 55 30 45 40 35 30 25 20 15 10+ MR Demand +++ s 10 is 20 25 30 35 40 4s s0 ss 60 6s 70 7s so as 90 95 10010s1101is120 Refer to Figure 6-2. What quantity will the monopolistically competitive firm charge in this market?
9
Homework. The inverse demand curve a monopoly faces is p= 110 – Q. The firm's cost curve is C(Q) = 30 + 5Q. What is the profit-maximizing solution? The profit-maximizing quantity is (Round your answer to two decimal places.) The profit-maximizing price is $ (round your answer to two decimal places.) DEC 13 MacBc esc 80 F1 F2 F3 F4 F5 #3 2$ 1 2 3 Q W < CO -
Please no written by hand and no emage
ne Semester 2023 dules nouncements NWP Assessment Play X signments scussions yllabus Grades Zoom People Turnitin https://calstatela.instructure.com/courses/85933/quizzes/382812/take Oligopoly Oaksville has two tennis instructors, Sam and Jack. The figure shows the demand curve and marginal revenue for tennis lesson appointments and the average total cost. Price and cost (dollars per appointment) Microsoft Office 365 Google Apps Type here to search X F1 @ 2 21 A- F2 A+ F3 Quiz: Homework 7 #3 X F4 BI $ 4 70 60 50 40 30 23 10 ☀ - F5 0 X % 5 2 Alt Text: pink glitter ro X Alt Text: appointments Competitive Outcome, (Pcomp, Qcomp) ☀+ F6 6 MR 8 F7 6 4 10 Quantity (appointments per hour) L yu F8 8 & 7 O MC D ATC F9 Negative Manuscript X * 00 8 F10 ( 9 n F11 ) 0 Oracle Peopl 59°F Mostly clouc ☆ A to F12 Hom