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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