Given the market shares below, calculate the Herfindah-Hirschman Index (HHI). Would the Federal Trade Commission approve a merger between GM and Ford? Company Market Share (in Percent) GM 21 Ford 19 Toyota 16 Chrysler 13 Nissan 9 Hyundai 7 Kia 6 Subaru 5 Volkswagen 4
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6. Given the market shares below, calculate the Herfindah-Hirschman Index (HHI). Would the Federal Trade Commission approve a merger between GM and Ford?
Company
Market Share (in Percent)
GM
21
Ford
19
Toyota
16
Chrysler
13
Nissan
9
Hyundai
7
Kia
6
Subaru
5
Volkswagen
4
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- If public utilities are a natural monopoly, what would be the danger in splitting them into a number of separate competing firms?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%Choose the most appropriate answer. 1.1 Read the following extract and answer question 1.1, 1.2. Evidence of dominationBoth the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominantacross the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they haveentered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacomto provide mobile services, and Liquid and Rain are disincentivised from competing aggressively in the mobilemarket due to the lucrative deals they have struck to provide capacity to either Vodacom or MTN, or both. Thishas limited their ability to compete independently – leaving Telkom as the only entity in the position to be able tochallenge the “cosy” market structure head-on.Source: https://techcentral.co.za/mcleod-is-wrong-about-telkom/110373/Accessed: 19/08/21 The economic argument being expressed in this extract is that of __________ and has the…
- Question 1 Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 Beer (in %) 25 15 20 40 0 Chocolate (in%) 30 20 20 20 10 The table above presents the market shares of two industries in &. Total production in the beer industry amounts to 10'000 liter and the chocolate industry to 10 tons. a) Compute the CR4 concentration measure of each industry. b) Compute the HHI measure of each industry. c) Determine the Lerner Index in both markets: assume that in the beer market the cost of production is C=7'000+5*Q² (where Q is beer measured in liters) and the price per liter is 10 and that the chocolate market the cost of production is C=1'000+100*Q² (where Q is measured in tons) and the price per ton is 1'500.What is the significance of the Herfindahl-Hirschman Index (HHI) in measuring market concentration and how does it impact competition within an industry?Suppose that econometricians at Hallmark Cards determine that the price elasticity of demand for greeting cards is -2. a. If Hallmark's marginal cost of producing cards is constant and equal to $1.00, use the Lerner index to determine what price Hallmark should charge to maximize profit. b. Hallmark hires you to estimate the price elasticity of demand faced by its archrival, American Greetings. Hallmark estimates that American's marginal cost of producing a greeting card is $1.22. You note that American's cards sell for an average of $3.25. Assuming that American Greetings is maximizing profit, calculate their price elasticity of demand.
- Hi please assist me with this question. 1.1 Read the following extract and answer question 1.1, 1.2. Evidence of dominationBoth the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominant across the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they have entered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacom to provide mobile services, and Liquid and Rain are disincentivised from competing aggressively in the mobile market due to the lucrative deals they have struck to provide capacity to either Vodacom or MTN, or both. This has limited their ability to compete independently – leaving Telkom as the only entity in the position to be able to challenge the “cosy” market structure head-on.The economic argument being expressed in this extract is that of __________ and has the consequence of ______________. a) Market failure, externalities.b) Government…1.1 Read the following extract and answer question 1.1, 1.2. Evidence of domination Both the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominant across the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they have entered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacom to provide mobile services, and Liquid and Rain are disincentivised from competing aggressively in the mobile market due to the lucrative deals they have struck to provide capacity to either Vodacom or MTN, or both. This has limited their ability to compete independently- leaving Telkom as the only entity in the position to be able to challenge the "cosy" market structure head-on. The economic argument being expressed in this extract is that of and has the consequence of a) Market failure, externalities. b) Government failure, public goods being under-produced. c) Market failure,…Discuss in detail the equilibrium of a firm under monopoly.Q. 3. What do you mean by simple linear regression line. Estimate, Y , given thefollowing data:-Demand 3 4 5 6 7 9 8 10 12 14Price 16 13 10 7 7 5 4 3 4 2
- The table below shows revenue data for different firms producing airplanes. Use the given information to determine the 4 Firm Concentration ratio. What is the Four Firm Concentration Ratio? % Is this market concentrated? OYes ONO Firm Acme Co Buzzy Co Cran Inc Dingo Inc Echo Co Farriss Co Revenue in $ Market Share in % 11 16 14 20 21 18 350 530 440 655 675 595Answer the following questions based on the information given in the article below. MXCC to Probe Grab-Uber Merger By Sulhi Azman, The Edge Markets, July 13,2018 KUALA LUMPUR (July 13): The Malaysia Competition Commission (MyCC) will investigate the merger between Uber and Grab in Malaysia, which has resulted in Grab having a monopoly in the country's ride-hailing business. "MyCC has taken preliminary action and conducted its first discussion with Uber and Grab on March 30, 2018, which was four days after the two companies announced their merger position," the Domestic Trade and Consumerism Ministry said in a statement today. Under the Competition Act 2010, the ministry said MyCC is empowered to take on parties which have merged and thus having resulted in a monopoly status within the market it operates at. At the same time, the ministry said MyCC is empowered to investigate and take action on parties abusing the monopoly status and violating Section 2 of the Competition Act 2010,…3. How do the FTC/DOJ merger guidelines about defining the relevant market relate to demand elasticity and the Lerner index of Market Power studied in class previously? The Lerner Index of Market Power is , where |E|is the demand elasticity at the current price for the market being considered. 1