The Federal Trade Commission (FTC) defines 3 types of mergers: horizontal, vertical and potentialcompetition. Use the link below to learn more about the different types of mergers. After reading throughthe information, explain how each type of merger works.https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/mergers/competitive-effects5) Production Theory - The table below shows the production capabilities for a small fishing operation in thePacific Northwest. Total Product (TP) refers to the number of pounds caught in a day. Fill in the missingcolumns below.L TP-q MP00.0017.00218.00333.00446.00555.00662.007 67.00871.009 74.001076.0011 76.0012 74.00AP A horizontal merger is a merger between firms that produce and sell the same products. When one firmwants to buy another firm, the buyer must obtain approval from the U.S Department of Justice and theFederal Trade Communication. These agencies are charged with evaluating the impact of the merger onmarket participants and have the power to approve or deny any merger. To evaluate the impact of themerger, the agencies use the Herfindahl Hirschman Index (HHI) to study changes in competition. It'simportant to note that the agencies evaluate other market factors as well.FirmsDollar TreeDollar GeneralFamily Dollar99 Cent Only StoreDollar WowDollar Centrala.) Calculate the HHI for the industry. Show work.Market Sales ($ millions)121088102b.) Assume that Dollar Tree would like to buy (merge with) Dollar Central. Calculate the post-merger HHI.Show work.c.) Assume the Federal Trade Commission uses the following rule:AHHI < 100 → Merger will be approved.AHHI ≥100 → Merger will be denied.Based on the data, will the merger between Dollar Tree and Dollar Central be approved or denied?Explain.

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The Federal Trade Commission (FTC) defines 3 types of mergers: horizontal, vertical and potential competition. Use the link below to learn more about the different types of mergers. After reading through the information, explain how each type of merger works. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/mergers/competitive-effects

The Federal Trade Commission (FTC) defines 3 types of mergers: horizontal, vertical and potential competition. Use the link below to learn more about the different types of mergers. After reading through the information, explain how each type of merger works. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/mergers/competitive-effects

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the difference between a vertical merger and a horizontal merger? Give an example of each category.
4. Imagine a market with demand P = 420 – Q in each period. Two firms are thinking about colluding. They each have cost C(Qi) = 60Qi. If they cooperate and behave as a monopoly, then they have a marginal revenue curve, MRm = 420 – 2Q, and a marginal cost curve, MCm = 60. If they are in a cartel, then the firms will split the monopoly production and profits. If they compete, then they face MRi = 420 – 2Qi – Q-I and MCi = 60. a. If the firms stick to their agreement (cooperate), how much per-period profit do they each make? b. If they are not able to maintain their agreement (compete), what is their per-period profit? c. If one firm cheats on their agreement (deviate), how much does each firm make? Be sure to specify both the profit for the cheater and the firm cheated-on. d. Suppose the firms assume that their interaction will last forever (r = 1) and they share the common discount value R. What is the lowest value of R such that both firms are willing to continue with the cartel…
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Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 25 percent, 24 percent, 18 percent, 12 percent, 11 percent, 6 percent, and 4 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? percent b. What is the Herfindahl index for the hamburger industry in this town? 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 =
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
Step 1 of 2: Use the following table with the sample data to calculate the four-firm concentration ratio for the U.S. auto market. Round your answer to the nearest whole number if necessary. Market Shares in the U.S. Auto Market GM 18%18% Ford 16%16% Toyota 14%14% Chrysler 10%
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 ←
Price 765432 17 16 15 14 13 12 11 10 8 7 6 5 327043 1 The accompanying graph depicts the demand and marginal revenue (MR) curves in a market | served by a monopolist. The monopolist faces a constant marginal cost of $4. MR Demand 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity What quantity will the monopolist produce to maximize its profits? Question 14 options: 12 6 8
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. Would Sam and Jack have an incentive to break the cartel agreement and lower their price to increase the number of tennis lesson appointments? Explain.
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 =