Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 16, Problem 10MC
To determine
Additional earning.
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Let's assume that the biggest two firms in the video game sector merged and that the market share
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historical standards for mergers, would the Federal Trade Commission certify this merger?
No, the FTC would probably challenge the merger.
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Maybe. The FTC would scrutinize the merger and make a case-by-case decision.
Yes, the FTC would ignore the merger and allow it to go through.
which market structure survive in pandemic?monopoly or oligopoly?
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Managerial Economics: A Problem Solving Approach
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- The following payoff table depicts service competition between two hospitalsin a southeastern city. (Each payoff represents profit in millions of dollars.) Hospital B’s ServiceBasic All-Purpose SpecialityBasic 5, 7 5, 4 12, 6Hospital A’s All-Purpose 4, 5 8, 7 7, 4 ServicesSpeciality 6, 10 3, 12 3, 3a. Does either hospital have a dominant strategy (or any dominatedstrategy)? Assuming they determine their strategies independently ofone another, what are the hospitals’ respective (Nash) equilibriumstrategies? Explain briefly.b. Suppose instead that the hospitals merge and, therefore, coordinatetheir service decisions. Which actions should they take? Explain briefly.c. What general economic reasons might there be for a hospital mergerto generate an increase in total profit? Would the hospitals’ customersbe likely to benefit from the merger? Under what circumstances?Explain carefullyarrow_forward2arrow_forwardWhen players in a game collude, they: A. make agreements not to compete with each other and, typically, to charge high prices. B. change their products, so that they are in different markets and not competing with each other. C. choose to avoid any outcomes that harm their rival. D. act independently to try to eliminate other players from the game.arrow_forward
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- Subject: Manegerial economics & policy Consider the following payoff matrix in which firms choose their capacity, either high or low. Suppose firm C has the ability to move first à What will be D’s move? Company C High Q Low Q Company D High Q (D) 50/50 (C) (D) 200/75 (C) Low Q (D) 75/200 (C) (D) 100/100 (C)arrow_forwardIF WALMART OFFERS A MAJOR SALE TO COMPETE AGAINST ITS COMPETITORS, HOW CAN THIS LEAD TO A PRISONER’S DILEMMA? A. IF WALMART DECREASES ITS PRICES TO GAIN MARKET SHARE AGAINST COMPETITORS THAT DID NOT LOWER THEIR PRICES, THEN WALMART WOULD EARN HIGHER PROFITS. B. IF WALMART DECREASES ITS PRICES TO GAIN MARKET SHARE AGAINST COMPETITORS THAT ALSO LOWERED THEIR PRICES, THEN ALL STORES EARN SMALLER PROFITS THAN IF THEY ALL KEPT THEIR PRICES HIGH. C. IF WALMART DECREASES ITS PRICES TO GAIN MARKET SHARE AGAINST COMPETITORS THAT DID NOT LOWER THEIR PRICES, THEN WALMART WOULD EARN LOWER PROFITS. D. WALMART PRICES ARE TOO HIGH. DECREASES IN ITS PRICES WILL CAUSE WALMART TO BREAKEVEN. E. WALMART PRICES ARE TOO LOW. WALMART SHOULD INCREASE ITS PRICES TO BREAKEVEN.arrow_forwardQ 1.identify how big Is the compliance market. Research the global market size and the growth expected. Q2. Which areas in compliance are growing Q3. Check which companies provide compliance and which industries they are catering to Q4 which services they are providing like cargo screening, entity screening,kyc environment social governance ,vessel screening,risk Q5.cknclusion - how companies are identifying their market and what drives product differentiation -- technology, product, service etcarrow_forward
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