First, go back to the Study Plan for "Monopoly" and review the section on Monopoly and Antitrust Policy. Then based on the following case study, what would you recommend as the best policy: should the Yum! corporation be allowed to own three fast food chains? Use the following concepts: The HHI index Economies of scale Monopoly profits Choose from the following: A) The merged ownership should have been permitted with no additional recommendations. B) The merged ownership should not be permitted at all. C) The merged ownership should be permitted with minor limitations (specify the limitations). D) The merged ownership should be permitted with major limitation (specify the limitations). The Yum! corporation owns the merged firms: KFC, Pizza Hut and Taco Bell Market shares in the US are: McDonalds 30% ($40,000,000,000 US revenue) Starbucks 15% Chick-Fil-A 7% Taco Bell 7% Burger King 7% Subway 6% Wendys 5% Dunkin 5% Dominos 4% Pizza Hut 4% KFC 3% Sonic 3% Arbys 2% Dairy Queen 2%
First, go back to the Study Plan for "
Then based on the following case study, what would you recommend as the best policy: should the Yum! corporation be allowed to own three fast food chains?
Use the following concepts:
The HHI index
Economies of scale
Monopoly profits
Choose from the following:
A) The merged ownership should have been permitted with no additional recommendations.
B) The merged ownership should not be permitted at all.
C) The merged ownership should be permitted with minor limitations (specify the limitations).
D) The merged ownership should be permitted with major limitation (specify the limitations).
The Yum! corporation owns the merged firms: KFC, Pizza Hut and Taco Bell
Market shares in the US are:
McDonalds 30% ($40,000,000,000 US revenue)
Starbucks 15%
Chick-Fil-A 7%
Taco Bell 7%
Burger King 7%
Subway 6%
Wendys 5%
Dunkin 5%
Dominos 4%
Pizza Hut 4%
KFC 3%
Sonic 3%
Arbys 2%
Dairy Queen 2%
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