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%

Q: [Let’s think about awarding a patent to any medication drug using the concepts that we learned in…

A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…

Q: I am intrigued by the following article detailing how Nestle agreed to pay Starbucks $7.2B to…

A: Profit maximization refers to the process of optimizing or maximizing the profit of a firm or an…

Q: uppose there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet…

A: Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: If Standard Oil was a natural monopoly, what would happen to the average cost of producing gasoline…

A: In economics, the long run is the period that leads to change in all the factors of production such…

Q: Is it true that a merger between two firms that are not already in the top four by size can affect…

A: Herfindahl-Hirschman Index (HHI) is used to measure market concentration. It reveals the level of…

Q: Carrot Computers and its competitors purchase touch screens for their tablet computers from several…

A: The gross domestic product (GDP) of a country is the total amount of goods and services it produces…

Q: The following questions are related to the price leadership model. a. Why does the Kelloggs brand…

A: Over 100 years ago, Kellogg introduced W.K. Kellogg's Kellogg's cornflakes. Today, they continue to…

Q: Suppose a market has a Herfindahl index of 0.1. Should we expect this market to be fiercely…

A: To determine the level of market rivalry, economists frequently use the Herfindahl index, which is a…

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: Explain the contradictory incentives associated with forming and maintaining cartels.

A: A cartel is a situation in which members of an oligopoly form a group in which they work together in…

Q: Suppose that a small town has six burger shops whose respective shares of the local market are (as…

A: Four-firm concentration ratio of the hamburger industry is percentage of industry sales that we get…

Q: In the 1980s, PepsiCo Inc., which then had 28 percent of the soft-drink market, proposed to acquire…

A: The merging is the strategy used under the oligopoly market where there are only a few large sellers…

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

A: Cost of the production is the monetary value incurred on factor of production in production process…

Q: Use the table to calculate the Herfindal-Hirschman Index for the U.S. auto market. Would the FTC…

A: Herfindal – Hirschman Index is found by adding the squares of market share of each firm. HHI = 192 +…

Q: Suppose that in the market for sunglasses, market share is divided among six companies in the…

A: The FTC evaluates potential mergers among competitors using the Herfindahl-Hirschman Index (HHI) to…

Q: The following table presents information on the production of five firms that produce all of the…

A: GIven: Table that presents information on the production of five firms that produce all of the…

Q: Part 1. Suppose that you overhear a foursome of physicians on the golf course discussing the prices…

A: Part 1: Such an agreement among physicians to all charge the same fee for an office visit is called…

Q: Isolated Island has three natural gas wells. Three firms each own one. The table gives the demand…

A: A cartel is a formal agreement between firms in an industry to coordinate their activities, usually…

Q: |cans and charge s ], so the daily total industry profit in the beer market is 5 When they act as a…

A: Profit maximizing level is MR = MC, So the total quantity produced will be 180 and the price will be…

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

A: * SOLUTION :-    (35)

Q: Suppose that the top six firms in an industry have total annual sales of $250 billion, $210 billion,…

A: The four-firm ratio measures the competition level in the market. It shows the market share of the…

Q: Suppose there are only two automobile companies,Ford and Chevrolet. Ford believes that Chevrolet…

A: The above price and profit data can be presented in the form of matrix as shown below: Payoffs are…

Q: Calculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms…

A: It is used to measure the market conditions based on the share of the companies in the industry.…

Q: Company Revenues Pharma 32000 Rock 23000 Nova 18000 Jiji Mark 15000 12000 10 others 1000 each

A: Herfindahl index measures the market concentration. It determines the competitiveness in the market.…

Q: Company Market Share Toshiba 10% Dell 10% HP 15% Sony 10% Refer to the table above, which details…

A: "The Herfindahl-Hirschman Index or HHI is used to measure the market concentration and to determine…

Q: Suppose that econometricians at Hallmark Cards determine that the price elasticity of demand for…

A: Price elasticity of demand shows how much the quantity demanded of a good responded to the change in…

Q: Listen to "Google's Mobile Monopoly" from NPR's Planet Money podcast. (Link here.) Write a short…

A: According to the podcast, Google deterred smart phone operating system competitors by offering the…

Q: When describing the Herfindahl-Hirschman Index (HHI) in class, one slide suggested, “Weight each…

A: Herfindahl-Hirschman Index (HHI) is used to determine market competitiveness before and after Merger…

Q: The table below shows revenue data for different firms producing frying pans. Use the given…

A: Market share is the sale of one company divided by total sales and then multiplied by 100  So ,…

Q: The table shows the total revenue of the 50 firms in the roofing industry. Calculate the four-firm…

A: Four - firm concentration ratio is the sum of the market share of the four largest firms in an…

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: The following table lists the market shares of the eight firms in an industry.  Market Shares of…

A: Four firm concentration ratio (C4) = Share of top 4 companies in the market

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

A: The two measures of the degree of concentration are the four-firm concentration ratio and the…

Q: Unsure which is the correct answers Suppose that three firms make up the entire wig manufacturing…

A: The Herfindahl-Hirschman index is the measure of the concentration of the market. HHI is calculated…

Q: Elon Musk, the richest man in the world, currently controls two companies, Tesla, which manufactures…

A: A horizontal merger is when a company acquires merges with another company that is involved in the…

Q: Jsing the data in the table below, find the change in the Herfindahl-Hirschman index Research In…

A: post-sale market share of RIM xix will be (20+10) i.e. 30%

Q: The following table presents information on the production of five firms that produce all of the…

A: 4 firm concentration ratio is the total sales of first 4 firm divided by the total sales of the…

Q: Coke and Pepsi dominate the cola market. Suppose that the marginal cost of making cola is $2. Assume…

A: In a cartel , The profit maximizing output is where the marginal revenue is equal to the marginal…