MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Question
Chapter 15, Problem 3IP
(a)
To determine
The reason why Mattel want to buy Fisher-
(b)
To determine
The arguments in favor of allowing this acquisition.
(c)
To determine
The arguments against allowing this acquisition.
(d)
To determine
The comparison of the four-firm concentration ratio for the entire toy industry to the pre-school toy market.
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Suppose that the six firms in industry A have annual sales of 40, 35, 12, 5, 5, and 3 percent of total industry sales. For the six firms in industry B, the figures are 35, 18, 15, 14, 10, and 8 percent. b. Calculate the four-firm concentration ratio and the Herfindahl index for each industry and compare their likely competitiveness. Instructions: Enter your answers as whole numbers.
Industry A four-firm concentration ratio =
Industry A Herfindahl index = Industry B four-firm concentration ratio =
Industry B Herfindahl index =
c. Industry A will be ________ (more/less) competitive than industry B.
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Calculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in
this market.
Sales (millions of dollars)
7.4
7.1
Expressive
6.8
LA & Company
6.2
5.3
Forever 22
Limitless
4.2
What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations.
Retailer
Dap
American Jaybird
Calculate the four-firm concentration ratio (CR-4) given the sales data. Assume that the firms listed are the only firms in
this market.
Sales (millions of dollars)
7.4
7.1
6.8
6.2
5.3
4.2
What is the four-firm concentration ratio? Round to the nearest whole percent in your calculations.
Retailer
Dap
American Jaybird
Expressive
LA & Company
Forever 22
Limitless
four-firm concentration ratio:
28
Chapter 15 Solutions
MICROECONOMICS
Ch. 15.1 - Prob. 1QCh. 15.1 - Prob. 2QCh. 15.1 - Prob. 3QCh. 15.1 - Prob. 4QCh. 15.1 - Prob. 5QCh. 15.1 - Prob. 6QCh. 15.1 - Prob. 7QCh. 15.1 - Prob. 8QCh. 15.1 - Prob. 9QCh. 15.1 - Prob. 10Q
Ch. 15 - Prob. 1QECh. 15 - Prob. 2QECh. 15 - Prob. 3QECh. 15 - Prob. 4QECh. 15 - Prob. 5QECh. 15 - Prob. 6QECh. 15 - Prob. 7QECh. 15 - Prob. 8QECh. 15 - Prob. 9QECh. 15 - Prob. 10QECh. 15 - Prob. 11QECh. 15 - Prob. 12QECh. 15 - Prob. 13QECh. 15 - Prob. 14QECh. 15 - Prob. 15QECh. 15 - Prob. 16QECh. 15 - Prob. 17QECh. 15 - Prob. 18QECh. 15 - Prob. 1QAPCh. 15 - Prob. 2QAPCh. 15 - Prob. 3QAPCh. 15 - Prob. 4QAPCh. 15 - Prob. 5QAPCh. 15 - Prob. 1IPCh. 15 - Prob. 2IPCh. 15 - Prob. 3IPCh. 15 - Prob. 4IPCh. 15 - Prob. 5IPCh. 15 - Prob. 6IPCh. 15 - Prob. 7IP
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- Consider the argument: Price-match guarantees are bad for consumers because they eliminate any incentive for competitors to reduce prices. When you think it through, it's obvious that they eliminate price competition; ACME wouldn't win any of Globex's customers by offering a discount if Globex will give the same discount. The argument is extended; that is, there's a main argument and an argument for one of the premises. What is the main conclusion? O ACME wouldn't win any of Globex's customers by offering a discount if Globex will give the same discount. o Ensuring that customers will pay the lowest available price is good for consumers. O Price-match guarantees eliminate any incentive for competitors to reduce prices. O Price-match guarantees are bad for consumers.arrow_forwardSuppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 18 percent, 24 percent, 20 percent, 11 percent, 10 percent, 9 percent, and 8 percent. The four-firm concentration ratio for the hamburger industry in this town is percent. (Enter your response as a whole number.) The Herfindahl index for the hamburger industry in this town is (Enter your response as a whole number.) Suppose the top three sellers combined to form a single firm. The four-firm concentration ratio would be percent. (Enter your response as a whole number.) Suppose the top three sellers combined to form a single firm. The Herfindahl index would be (Enter your response as a whole number.)arrow_forwardIf the top two companies in the fast food industry merged, their new market share would equal 17% of the market. This industry's new HHI would be 845. According to the FTC's historical guidelines for mergers, would the FTC approve this merger? Select the correct answer below: Yes, the FTC would ignore the merger and allow it to go through. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. No, the FTC would probably challenge the merger Give step by step answer with final solutionarrow_forward
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